A report of the failure of nation state sovereignty and seigniorage and the rise of regional sovereignty and regional seigniorage, for the week ending Friday May 24, 2013.

1) … The dispensation manifest comes of age.

1A) … The final phase of the Business Cycle got fully underway on Monday 20, 2013, with the trade lower in Electric Utilities, XLU, and Mortgage REITS, REM, such as IVR, on the rise of the US Interest Rate, ^TNX, to 1.97%, the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening. and the trade lower in Greece, GREY, and its bank, NBG, as well as the trade lower in the US Dollar, $USU, UMP.

The end of Global ZIRP, as well as the termination of the world central banks’ monetary authority is confirmed with the parabolic trade lower in China’s Electrical Utility, HNP. Investors derisking out of Biotechnology, IBB, such as AMGN, SGEN, ALXN, REGN, CELG, RGEN, and BRMN, as well as out of US Homebuilding, ITB, such as DHI, PHM, and LEN, reflects that the monetary policies of the US Federal Reserve are no longer stimulative, but rather have crossed the Rubicon of sound monetary policy, and have made “money good” investments, bad. Yes, another bust just like 2008, has commenced, only much, much worse this time.

Earlier in the month, with the commencement of competitive currency devaluation on Friday May 10, 2013, specifically with the world’s individual currencies excluding the US dollar, trading lower, and with not only Aggregate Credit, AGG, trading lower, but also the highly indebted Electric Utilities, XLU, as well, the world pivoted from Liberalism’s age of investment choice, to Authoritarianism’s age of diktat; the epoch of inflationism ceased, and the epoch of Destructionism commenced.

In compliment of the currency traders, who have started a sell of the world currencies, the bond vigilantes have gained a nascent control of interest rates, as is seen in their call of the Interest Rate on the US Ten Year Note, ^TNX, higher to 1.95%, and a steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening.

And then during the week ending Friday May 17, 2013, the coordinated intensification by the central banks throughout the world for the reduction of interest rates, established Global ZIRP, with Benton te writing 511 Interest cuts and sluggish economic growth, causing a blow off stock market top, seen in the chart of World Stocks, VT, rising 1.2%, and seen in the chart of the S&P 500, $SPX, SPY, closing at 1,667, up 2.1% for the week; it has risen 1,000 points from the March 2009, 667 low, in 50 months.

A look back in time reveals that beginning with stock market confidence in Mario Draghis’ OMT in August 2012, currency carry trade investment from a rising Euro Yen, EUR/JPY, Currency Carry Trade, seen in the chart of FXE:FXY, as well as a rush of toxic credit, seen in the chart of Junk Bonds, JNK, coupled with a sale of Gold, GLD, to close at $1,306, started a risk-on rally, flow of funds in the S&P 500, SPY, as well as the Russell 2000, IWM.

Alexis Xydias of Bloomberg reports The most-indebted U.S. companies are rallying more than any time in almost four years compared with the rest of the stock market amid the broadest rally since at least 1995. Federal Reserve interest rates near zero and the expanding economy are allowing Standard & Poor’s 500 Index companies with the lowest working capital, smallest earnings and highest debt ratios to reduce borrowing costs and avoid default. The stocks surged 27% this year, almost double the gains for businesses with the most cash and least borrowing. I comment that such companies include International Paper, IP, and Next Era Energy, NEE.

The world central banks’ monetary policies of Global ZIRP, especially coming on strong since April 18, 2013, have finally started to turn “money good” investments, bad. A case in point is Australia’s Westpac Banking, WBK; in contrast, currency carry trade endowed, Lloyds Bank, LYG, US Too Big To Fail Bank Citigroup, C, and Regional Bank, RF, rose strongly in a Global ZIRP grand finale finish of investment mania. Failing of Global ZIRP, stimulated investors to derisk out of Nation Investment in Australia, EWA; in contrast Malaysia, EWM, and the Philippines, EPHE. rose strongly on Global ZIRP cool aid. And souring Global ZIRP, in particular the debt dynamics of Australia Dividends, AUSE, turned this investment lower, while investors pursued Pharmaceuticals, PJP, Small Cap Value, RZV, and Premium REITS, KBWY, Another example of investors derisking on excessive credit policies, is the trade lower in Japanese Treasury Bonds, as seen in their inverse, JGBS, trading higher, in contrast Japan, EWJ, rose strongly. The ongoing Yahoo Finance chart of the Philippines, EPHE, together with Small Cap Nation Investment, IFSM, reflects the terrific investment mania that has been at work in that nation.

It is sovereignty that provides order and begets seigniorage, that is moneyness. The rule of Liberalism’s democratic nation states provided a moral hazard, toxic credit, and global carry trade financed seigniorage, via the genius of the Milton Friedman Free To Choose fiat money system.

Financial institutions, IXG, European financials, EUFN, Far East Financials, FEFN, Emerging Market Financials, EMFN, Too Big to Fail Banks, RWW, Chinese Financials CHIX, Regional Banks, KRE, will no longer be transmitting seigniorage; rather they will be integrated into the government, and be known as Gov Banks, or Government Banks, and in Europe be part of a regional diktat union.

Seigniorage, that is moneyness, will no longer come from democratic nation states, which supported economic growth, global trade and corporate profitability; but rather from the word, will and way of sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as nannycrats in statist public private partnerships, and the ECB, as they invoke mandates for regional security, stability, and sustainability.

As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is

pivoting the world from Liberalism which featured the Banker Regime’s, Milton Friedman Free To Choose, fiat money system … to Authoritarianism which features the Beast Regime’s, regional governance, totalitarian collectivism, debt servitude, and austerity, diktat money system.

1B) … Sound and beneficial ideas are in scarce, that is in the general sense of the word in limited supply … Sound and beneficial ideas help one understand reality and make sound and beneficial decisions.

One’s ideology is based upon either the fiat of philosophy or religion which is basically will worship, that is, the worship of one’s own will. On the other hand, one’s idea are based upon Scripture, that is the Gospel, or Good News of the objective reality of Christ, Ephesians 4:21-24, which provides Grace and Truth, John 1:17.

Unfortunately, much of today’s Christian religion is based upon the false premise that one chooses Jesus. However, sound doctrine is both reformed based, along the lines of John MacArthur, John Gill, and John Calvin, as well as restored based, along the lines of Witness Lee and Watchman Nee; and presents that God chose the believer in Christ from eternity past, predestined him, appointed him, and made him accepted in The Beloved.

Isms are processes that produce states-of-beings from ideas.

Dispensationalism is the concept that Jesus Christ is exercising administrative management of all things in each of mankind’s epochs, eras, eras, and time periods, to make them full, Ephesians 1:10, Ephesians 3:2, Ephesians 3:9, Colossians 1:25.

Dispensationalism comes from Strong’s Greek word oikonomia, #3622, dispensation, and means household dispensing, household stewardship, household management and economic oversight of property for the completion of every age, era, and epoch and time period. Dispensations are time of mercy and judgment.

Dispensationalism produces both the “saints” and the “aints”.

MB-Soft relates Dispensational theology grows out of a consistent use of the hermeneutical principle of normal, plain, or literal interpretation. This principle does not exclude the use of figures of speech, but insists that behind every figure is a literal meaning. Applying this hermeneutical principle leads dispensationalism to distinguish God’s program for Israel from his program for the church. Thus the church did not begin in the OT but on the day of Pentecost, and the church is not presently fulfilling promises made to Israel in the OT that have not yet been fulfilled.

1C) … The dispensation economics manifest is the foundation for a life of virtue and ethics, establishing the elect as separate from the fiat who live in carnality and iniquity; it comes from an understanding of dispensationalism, serves as the basis of dispensation economics manifest, and is a creed for a dispensation economics manifest.

As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is establishing a new order consisting of fifteen New Things.

The New Things of Christ establish the dispensation economics manifest which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ is operating in dispensation, that is the household management plan of God to complete and fulfill all things in every age, epoch, era and time period.

The New Things of Christ that come by the Economy of God are:

1) a New Paradigm, (from liberalism to authoritarianism. Under liberalism bankers, corporations, government, entrepreneurs, and citizens of democracies were the legislators of economic value and the legislators of economic life. Under authoritarianism, currency traders, bond vigilantes and nannycrats working both in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends),

12) a New Religion (from religions and philosophies based upon the worship of one’s own will, to eventually a mandatory one world religion consisting of emperor worship, yet for the elect, faith in Christ),

13) a New Money System, (from the fiat money system, to the diktat money system),

14) a New Reality, that is a new experience, (from human experience, to the experience of the divine nature; where the elect are called to live in godliness, 2 Peter 1:6, manifest in the fruits of the spirit, and experience Christ as one’s life, Colossians 3:3-4, as well as one’s all inclusive life experience. Colossians 3:11. In the spiritual life of Christ, Colossians 3:3-4, the elect live grow in virtue and ethics. Whereas, the fiat remain in the carnal life, Romans 7;14, Romans 15:27, and 1 Corinthians 3:3, and devolve in carnality and iniquity. The elect keep the word of His endurance, and shrink not from His Name, and thereby live in His presence and authority, Revelation 3:8-10. They live a life of biblical separation. They practice the New Man in Christ, mortifying, that is putting to death the carnal desires that come up through temptation, so as to prevent the pain and dislocation that comes from stumbling and falling in sin. And they live a life of ethical regard for others; for example, they pursue peace with all men, defraud no one, and do not make merchandise out of others),

15) a New Way (from carnality and iniquity to virtue and ethics. New vessels for the new way. The elect are vessels of righteousness who keep Christ’s word of endurance and do not deny his name, Revelation 3:8-10, and maintain their vessels in purity and holiness. In contrast, vessels of iniquity exist for the old man and the old way. The fiat have experience in the mandates of philosophy, religion, and regional governance, are vessels of iniquity, and have ever increasing experience in the mystery of iniquity; these exercise their vessels in poneros speech and behavior).

2) … This week’s trading reflects that the final phase of the Business Cycle got fully underway on Monday May 20, 2013: An Elliott Wave 5 Top has been achieve in World Stocks, VT, and in the S&P 500, SPY.

2A) …On Monday May 20, 2013, the world definitely entered into Kondratieff Winter with the trade lower in Electric Utilities, XLU, and Mortgage REITS, REM, such as IVR, on the rise of the US Interest Rate, ^TNX, to 1.97%, the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening. and the trade lower in Greece, GREK, and its bank, NBG, as well as the trade lower in the US Dollar, $USU, UUP.

The end of Global ZIRP, as well as the termination of the world central banks’ monetary authority is confirmed with the parabolic trade lower in China’s Electrical Utility, HNP. Investors derisking out of Biotechnology, IBB, such as AMGN, SGEN, REGN, CELG, RGEN, and BMRN, as well as out of US Homebuilding, ITB, such as DHI, PHM, and LEN, reflects that the monetary policies of the US Federal Reserve are no longer stimulative, but rather have crossed the Rubicon of sound monetary policy, and have made “money good” investments, bad. Yes another bust just like 2008, has commenced, only much, much worse this time.

Bloomberg reports Gold rebounds after Moody’s says U.S. may face downgrade. Gold, GLD, and silver, SLV, rebounded after Moody’s Investors Service said U.S. policy makers must address debt woes to avoid a credit-rating downgrade this year, boosting the appeal of the metals as a haven. “More needs to be done on the policy front to address this rising debt ratio,” said Steven Hess, a senior vice president at New York-based Moody’s.

Liberalism featured the pursuit of yield bearing equity and credit investments; but authoritarianism features the abandonment of fiat wealth, and the acquisition of physical wealth, in particular gold.

Liberalism was the epoch of the use of currencies; but authoritarianism is the age of the destruction of currencies. Financial market trading on Monday May 20, 2013, reflects an epoch change, as the bond vigilantes called interest rates higher, and the currency traders called the US Dollar lower, resulting in debt deflation of interest rate sensitive investments, these being the Electric Utilities, XLU, such as AEP, DTE, NEE, D, CMS, PNW, and WEC, as well as the Mortgage REITS, REM, such as IVR.

Today’s pivotal changes in the equity and credit markets reflects that Jesus Christ is the master mind and engine of operation of the economy of God, as He is working in dispensation, for the completion an the fulfillment of every age, era, epoch and time period, a bible doctrine presented by the Apostle Paul in Ephesians 1:10.

Liberalism was an epoch where trust in sovereign authority of democratic nation states flourished; that trust diminished again Monday May 20, 2013, as Aggregate Credit, AGG, traded lower.

With the exhaustion and failure of the world central banks’ monetary authority, the dynamos of corporate profitability, global growth and nation state investment are winding down crony capitalism, European socialism and Greek socialism, as is seen in Greece, GREK, Turkey, TUR, and Mexico, EWW, turning lower. Now the dynamos of regional security, stability, and sustainability, are winding up regionalism, where people trust in regional leaders, and in regional bodies such as the ECB.

Most definitely Liberalism’s Milton Friedman Free To Choose Floating Currency Banker Regime died when Electric Utilities, XLU, and individual currencies, such as the Australian Dollar, FXA, traded lower the week ending May 10, 2013. Further evidence of the dissolution of the fiat money system, comes from Moody’s announcement of downgrade of the US Dollar in 2013. It has served as the international reserve currency since the Breton Woods Agreements, and has thus been the basis for Liberalism’s fiat money system.

Diktat Money was born out of the Cyprus Bank Deposit Bailin, and is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity measures that are experienced, such as heavy losses on large bank deposits via bailins, levying of additional taxes, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability. CNBC reports Eurogroup Chief says France must speed up reforms. Jeroen Dijsselbloem, the president of the 17-nation euro bloc of nations, said France needs to accelerate its reform program after the country was given a two-year extension to meet European Union budget-deficit targets. I comment, most assuredly, God has put, and is putting Liberalism’s leaders, such as Milton Friedman, Phil Gramm, and Robert Rubin, out to pasture, and bringing in Authoritarianism’s new leaders. Yes, new leaders for a new age.

Authoritarianism’s Beast Regime of regional governance, totalitarian collectivism, debt servitude, and austerity, is rising out of the failure of the monetary policies of the world central banks. This monster will rise first to rule in the Eurozone, serving as the very experience and model for economic and political life in each of the world’s ten regions, and in all of mankind’s seven institutions, as is foretold in bible prophecy of both Revelation 13:1-4, and in Daniel 2:25-45, which foretells that the Ten Toed Kingdom, where toes of iron diktat and clay democracy, will replace the two great empires that have ruled the world since the late 1700s, these being the British Empire, and the US. This as Stephen Walt of Antiwar writes Top 10 warning signs of Liberal Imperialism

Ambrose Evans Pritchard writes Italy’s industrial output falls back to 1970s. Italy’s president Giorgio Napolitano has called for immediate measures to combat a “dramatic crisis” after the country’s industrial output fell back to levels reached in 1979. The plea came after fresh data showed industrial production in March fell 7.6pc from a year earlier, dropping for the 15th consecutive month. New orders fell 10pc.

Robert Wenzel write The Eurozone economies: it’s not pretty The Eurozone is in the down phase of the business cycle and government regulations make it difficult for startups in most EZ countries to launch, regulations in most EZ countries also make it risky for established firms to hire. Further, unemployment packages make it attractive for most to stay unemployed once they are laid off. Thus you have economies that look like this. Unlike the European Central Bank, which has been doing only very modest money printing, the Fed has been flooding the markets, which has caused, yet another manipulated boom in the housing sector and stock market, that will, soon experience another bust.

I comment that the chart labeled “sustained pain” shows divergence between the US and the Eurozone economic GDP, reflecting recession in the EU, commencing in the third quarter of 2011, largely due to anti-competitiveness, national wage contracts, banking insolvency, as well as socialist clientelism. On the other hand, in the US, Federal Reserve money printing operations successfully stimulated M2 money growth in the US, which in turn greatly rewarded investors in Retail, XRT, Homebuilding, ITB, Biotechnology, IBB, IPOs, FPX, Dynamic Media, PBS, Pharmaceuticals, PJP, US Infrastructure, PKB, and Consumer Discretionary, IYC, as is seen in their ongoing combined Yahoo Finance chart.

Bloomberg reports China small cap bubble seen bursting by UBS analyst Chen. Chen Li, the UBS AG strategist who predicted the tumble in China’s smallest shares two years ago, says the companies are poised to retreat again after valuations rose to the biggest premium over larger stocks since 2010.

Now it was a ghost station. No train had stopped at Ruk in six months, because of cost cutting at the state-owned rail service, Pakistan Railways, and the elegant station stood lonely and deserted. At every major stop on the long line from Peshawar, in the northwest, to the turbulent port city of Karachi, lie reminders of why the country is a worry to its people, and to the wider world: natural disasters and entrenched insurgencies, abject poverty and feudal kleptocrats, and an economy near meltdown. Chronic electricity shortages, up to 18 hours per day, have crippled industry and stoked public anger. The education and health systems are inadequate and in stark disrepair. The state airline, Pakistan International Airlines, which lost $32 million last year, is listing badly (The article was reported and written before Declan Walsh’s expulsion from Pakistan by the Interior Ministry on May 10, 2013.)

There be many who have no knowledge that Jesus Christ, is at the helm of the economy of God, and that He in dispensation, Ephesians 1:10, has brought Liberalism to fulfillment and completion and is now introducing Authoritarianism as the world ‘s paradigm for economic and political experience. Such include Brigitte Granville, a professor of international economics and economic policy in the School of Business and Management at Queen Mary University of London … and … Hans-Olaf Henkel, a professor of international management at the University of Mannheim and a former president of the Federation of German Industries … and … Stefan Kawalec is chief executive officer of Capital Strategy and a former vice minister of finance in Poland … are the authors of the European Solidarity Manifesto; these write Save Europe: Split the Euro.

Concomitant with the Destructionism in economic and political life, I experience Jesus Christ dispensing himself into me, Ephesians 1:10, as the very element of life, Colossians 3:3-4, whereby I grow in the grace and truth of His word, am filled daily with the riches of his virtuous presence, and grow in ethical regard for others. I experience spiritual satisfaction in the New Man, Colossians 3:8, who replaces the carnal self, and experience mental satisfaction knowing His will in motivation, speech and behavior, as Christ becomes my all inclusive life experience, Colossians 3: 11.

2B) … On Tuesday May 21, 2013, Reuters reports Stocks advance as Home Depot, JPMorgan rise. World Stocks, VT, and US Stocks, VTI, rose to new highs, after Home Depot , HD, raised its profit outlook, while JPMorgan, JPM, rose after its chief executive won a vote of confidence from shareholders. The chart of the S&P 500, $SPX, SPY, shows a trade higher to $1,669.

Bespoke Investment Blog reports More bulls than bears for third week in a row. The weekly chart of closed end equity fund, CSQ, shows a topping off trade lower, as the weekly chart of closed end debt, PFL, shows a topping off rounded top trade lower. The combined chart of CSQ relative to PFL, CSQ:PFL, shows that equity has run its course leveraging higher now for three weeks, and that the latest gains in stocks cannot be sustained.

John Rubino writes Click on the next chart for a video from gold dealer Bullion Vault showing just how short the hedge funds are now (“managed money short futures” refers to hedge funds). Note that the last time they were really short (though nowhere near as short as today) was in the depths of the 2008 gold price correction – which was followed by an epic bull market in precious metals.

2C) … On Wednesday May 22, 2013, all forms of fiat wealth, Stocks, VT, Commodities, DBC, Major World Currencies, DBV, Emerging Market Currencies, CEW, and Credit, AGG, traded lower, as the WSJ reports The Fed leaves market guessing. Bernanke signals cautious track on bond buying; Meeting minutes blur picture. The Fed could take a first step toward reducing the program at one of its “next few meetings,” Mr. Bernanke said, but he cautioned that he was reluctant to move prematurely or aggressively. The comments, given at a congressional hearing Wednesday, gave markets a dose of clarity for a few hours, though a subsequent release of minutes from the Fed’s April 30-May 1 Fed policy meeting added to investor anxiety about the Fed’s plans. The minutes disclosed that some officials were prepared to start pulling back the program as early as the Fed’s next meeting in June, though the group as a whole, too, expressed hesitance.

There be many who have no knowledge that Jesus Christ, is at the helm of the economy of God, and that He in dispensation, Ephesians 1:10, has brought Liberalism to fulfillment and completion and is now introducing Authoritarianism as the world ‘s paradigm for economic and political experience.

The final phase of the Business Cycle got fully underway on Monday 20, 2013, with the trade lower in Electric Utilities, XLU, and Mortgage REITS, REM, such as IVR, on the rise of the US Interest Rate, ^TNX, to 1.97%, the steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening. and the trade lower in Greece, GREK, and its bank, NBG, as well as the trade lower in the US Dollar, $USD, UUP.

The end of Global ZIRP, as well as the termination of the world central banks’ monetary authority is confirmed with the parabolic trade lower in China’s Electrical Utility, HNP. Investors derisking out of Biotechnology, IBB, such as AMGN, SGEN, ALXN, REGN, CELG, RGEN, and BRMN, as well as out of US Homebuilding, ITB, such as DHI, PHM, and LEN, reflects that the monetary policies of the US Federal Reserve are no longer stimulative, but rather have crossed the Rubicon of sound monetary policy, and have made “money good” investments, bad. Yes, another bust just like 2008, has commenced, only much, much worse this time.

Earlier in the month, with the commencement of competitive currency devaluation on Friday May 10, 2013, specifically with the world’s individual currencies excluding the US dollar, trading lower, and with not only Aggregate Credit, AGG, trading lower, but also the highly indebted Electric Utilities, XLU, as well, the world pivoted from Liberalism’s age of investment choice, to Authoritarianism’s age of diktat; the epoch of inflationism ceased, and the epoch of Destructionism commenced.

In compliment of the currency traders, who have started a sell of the world currencies, the bond vigilantes have gained a nascent control of interest rates, as is seen in their call of the Interest Rate on the US Ten Year Note, ^TNX, higher to 1.95%, and a steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening.

A see saw destruction of fiat money, that is currencies, credit and stock wealth, has commenced as the world central banks’ monetary policies have crossed the Rubicon of sound monetary policy, making “money good” financial assets bad. In the age of Authoritarianism, the only forms of genuine wealth, will be diktat and physical possession of gold, that is gold bullion or bullion in online trading vaults such as Bullion Vault.

Wednesday May 22, 2013, was a pivotal day in economic and political life. With all forms of fiat wealth, Stocks, VT, Commodities, DBC, Major Currencies, DBV, Emerging Market Currencies, CEW, and Credit, AGG, trading lower, on the Congressional testimony of US Federal Reserve Chairman Ben Bernanke signaling a cautious track on bond buying, and minutes of the Fed Meeting providing a blurred picture of Federal Reserve policy, the world fully pivoted from the old economy to a new economy; that is 1) from the paradigm of liberalism to the paradigm of authoritarianism, 2) from the fiat money system to the diktat money system, and 3) from the banker regime of US Dollar hegemony to the beast regime of regional governance, totalitarian collectivism, debt servitude and austerity, also known as the ten toed kingdom of regional governance.

Under liberalism bankers, corporations, government, entrepreneurs, and citizens of democracies were the legislators of economic value and were the legislators of economic life. On the other hand, under authoritarianism, currency traders, bond vigilantes and nannycrats working both in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

Investors deleveraged and derisked out of stocks. World Stocks, VT, traded 1.1% lower; these included:

All people have values. Values are defined as the foundation, building blocks and framework for one’s life; they define one as being elect having values and ethics, or fiat having carnality and iniquity; these are grouped into seven categories, as people have 1) commitment to work and experience its rewards or are involved in clientelism and dependency and experience its fruits, 2) activities, 3) affiliations, 4) associations, 5) mode of transportation, a Lexus, or the bus, or a bicycle, or walking, 6) plans, 7) public way or a private way; either biblical separation or worldly involvement.

When planning, the elect set aside time, a place and a spiritual space for reflection on Christ, and purpose for virtue, which is defined as God’s noble attributes; and purpose for ethics which is defined as praiseworthy relations with others; and develop a good conscience which is defined as the ability to discern right from wrong speech and behavior.

The motivation for a life of virtue, ethics and good conscience comes from Paul’s desire presented in Colossians 1:9-10, that the believer be filled with the full knowledge, that is the full experience of God’s will in all spiritual wisdom and understanding, to walk worthily of the Lord, to please Him in all things, bearing fruit in every good work and growing by the full knowledge of God, that one manifest as fully grown in Christ, Colossians 1:28. Thus one escapes the corruption that comes from living in carnality and iniquity.

Spiritual wisdom is defined as the ability to accumulate and organize divine principles and is also defined as the ability to live within virtue by partaking of the divine nature. As God breathes spiritual life in one’s soul, on receives it in ones’ Spirit, and enjoys its life giving presence. This contrasts with the carnal nature, where one has life experience and satisfaction coming from living within bad, evil and wicked things, or from living in iniquity towards others. A fundamental life virtue is the attribute of truth and truthfulness, where truth is defined as a trustworthy promise or that which is reliable for belief, which in turn enables one to define the genuine meaning of a thing.

Witness Lee relates in commentary of Colossians 1:9-10, on page 923 of the New Testament Recovery Version of the Bible. Bearing fruit refers to living in Christ in every respect; this is the real essence of every Christian good work; not knowledge in letters in the mind, but the living knowledge of God in the Spirit, whereby we grow in life.

The apostle Paul writing in Ephesians 1:10, reveals that Jesus Christ is at the helm of the economy of God. Economy is defined as the rule of 1) a paradigm (liberalism or authoritarianism), 2) a money system (the fiat money system or the diktat money system), 3) a regime (the banker regime of US Dollar hegemony or the beast regime of regional governance, totalitarian collectivism, debt servitude and austerity, also known as the ten toed kingdom of regional governance)

Credit is defined as trust.

Wealth is defined as the accumulation of value.

Capital is defined as money.

Money is defined as resource.

Currency is defined as the means of exchange where worth is based upon a nation’s or region’s credit.

The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened, as is seen in the chart of the Steepner ETF, STPP, steepening 1.2%, establishing a breakout in the destruction of US Government Debt by the bond vigilantes. The Inerest Rate on the US Ten Year Note, ^TNX, traded unchanged.

Bloomberg reports Kuroda struggles with communication as Japan rates rise Haruhiko Kuroda may need to talk his way out of a paradox he helped create. Installed as head of the Bank of Japan in March, Kuroda aims to unlock borrowing and spending by lifting inflation expectations and wages after 15 years of deflation.

Bloomberg reports Asia goes on a debt binge In the heart of Kuala Lumpur Malaysia, lies the abandoned foundation of Plaza Rakyat, a never-built skyscraper and shopping mall. Rusty rebar jutting from concrete pilings and fetid green pools of rainwater serve as an unintended monument to the debt crisis that ravaged Asia in the late 1990s. Today, less than a half mile from the abandoned project, the next boom is under way. Construction has begun on a new subway line, and next to one station plans call for a 118-story zigzagging skyscraper that would be the third-tallest building in the world. Cheap credit is fueling the building spree.

Robert English of Economic Policy Journal writes Snapple founder dies at age 80; A non-crony capitalist. I wonder if he ever stepped foot in Washington D.C. WSJ reports: Leonard Marsh transformed a tiny fruit-juice supplier into Snapple, a national brand of fruit-flavored beverages and iced tea powered by quirky marketing and bold flavors. So successful was the brand that Snapple inspired dozens of imitators and prompted major soft-drink companies to introduce their own fruit and tea beverages to compete. Mr. Marsh, who died Tuesday at age 80, launched Snapple in New York with two friends in the early 1970s to supply natural fruit juices to health-food stores. After introducing lemonade and fruit-flavored ice tea in distinctive wide-mouth bottles, the company went public in a much-ballyhooed initial public offering in 1992. Mr. Marsh and his brother-in-law Hyman Golden originally ran a Brooklyn-based window-washing and office-maintenance business. In 1972, they teamed up with Arnold Greenberg, who operated a health-food store in Manhattan’s East Village, to create Unadulterated Food Products Inc. The company made juices and sold eggs and produce.

After renaming the company after one of their early products, carbonated apple juice, the founders became known collectively as the “Snapple Guys.” They built up the brand one cooler at a time in New York City’s pizzerias and bodegas.

I comment not only has Leonard Marsh, passed away, but the very paradigm of economic and political experience has transitioned from Liberalism to Authoritarianism, as Wednesday May 22, 2013,was a pivotal day in economic and political life, with all forms of fiat wealth, Stocks, VT, Commodities, DBC, Major Currencies, DBV, Emerging Market Currencies, CEW, and Credit, AGG, trading lower, on the Congressional testimony of US Federal Reserve Chairman Ben Bernanke signaling a cautious track on bond buying, and minutes of the Fed Meeting providing a blurred picture of Federal Reserve policy … Under liberalism bankers, corporations, government, entrepreneurs, such as Mr. Marsh, and citizens of democracies were the legislators of economic value and were the legislators of economic life … But, now, under authoritarianism, currency traders, bond vigilantes and nannycrats working both in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s end.

Peter Schiff writes in Economic Policy Journal writes Strong currencies produce strong economies. over the last decade Australia, New Zealand, and Switzerland, three of the world’s strongest economies, have produced strong currencies. Since 2001, all three have had generally appreciating currencies, accompanied by steadily rising exports, strong economic fundamentals, and low unemployment. From 2001 to 2012, the Kiwi Dollar appreciated by 98% against the U.S. dollar, but its exports in local currency terms increased by 40% (170% in U.S. dollar terms). Over the same time frame, the Aussie dollar appreciated by 103% and exports increased by 102% in local currency (and 305% in U.S. dollar terms). In Switzerland the story was the same, currency up 82%, exports up 53% in local terms and (and 175% in U.S. terms).

At the same time, the strengthening currencies made few negative impacts on other aspects of economic performance. At the time when the Swiss bankers caved to international pressure in September 2011 and pegged its previously surging franc to the euro, their economy had shown some of the best economic performance on the Continent. More recently, Australia and New Zealand reported stunning job creation figures. Adjusted for population, the U.S. would have had to create more than 600,000jobs per month to keep pace with Australia, and 900,000 jobs per month to match New Zealand (U.S. job creation has averaged about 169,000 per month over the last year).

These lessons have been wholly lost on the Japanese who are frantically trying (and succeeding) in severely devaluing the yen. Although Japan’s export machine had not suffered from the yen’s appreciation from 2001-2012 (up 30% in local currency exports and 98% in dollar terms), newly installed prime minister Shinzo Abe and his minions at the Bank of Japan believe a weaker yen is the key to renewed economic strength. But the collapse of the yen has helped push up both the Aussie and Kiwi dollars, which has spurred bankers in Australia and New Zealand into taking unneeded and ultimately self-destructive actions. In April they threw in their lot with the interventionists and cut interest rates to stop the rise of their currencies. But the moves fly in the face of the modern playbook which states that policy should be tightened during periods of full employment, strong growth, and surging real estate prices. The misplaced fear of a strong currency seems to trump all other concerns.

The falling yen is creating a clear and present danger in Japan’s enormous bond market. In less than one month, yields on 10 year Japanese Government Bonds have more than doubled, approaching nearly 1%. While those rates may sound manageable for most countries, Japan has the highest debt to GDP ratio in the developed world. If they had to pay 2% (the same rate as its inflation target), the country would need to devote more than half of its tax revenue just to service its debt! Clearly this possibility is dawning on stock investors who pushed down the Nikkei by more 7% today.

Never in the course of history has a country’s economy failed because its currency was too strong. It’s a pathology that simply does not exist. On the other hand, the list of those ruined by weak currencies is extensive. The view that a weak currency is desirable is so absurd that it could only have been devised to serve the political agenda of those engineering the descent. And while I don’t blame policy makers from spinning self-serving fairy tales (that is their nature), I find extreme fault with those hypnotized members of the media and the financial establishment who have checked their reason at the door.

A currency war is different from any other kind of conventional war in that the object is to kill oneself. The nation that succeeds in inflicting the most damage on its own citizens wins the war. The only real way to win is not to play.

I comment that with Jesus Christ at the helm of the economy of God, Ephesians 1:10, pivoting of the world’s economic and political paradigm from liberalism to authoritarianism, specifically from Crony Capitalism, European Socialism, and Greek Socialism, to Regionalism, countries are now at the mercy of currency traders and bond vigilantes. Authoritarianism will not be marked so much by countries acting to force their currencies lower, as it will be the case that currency traders are acting, together with bond vigilantes, to declare war on the world central banks, with the aim of destroying the value of nation state currencies, as well as national treasury debt.

Competitive currency devaluation commenced on Friday May 10, 2013, as the currency traders forced world’s individual currencies, such as the Australian Dollar, AUD, and the New Zealand Dollar, NZD, lower.

In compliment of the currency traders, the bond vigilantes have gained a nascent control of interest rates, as is seen in their call of the Interest Rate on the US Ten Year Note, ^TNX, higher to 2.02%, and a steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening. In fact the chart of Steepner ETF, STPP, shows a breakout, which is now commencing a destruction of US Government Debt, GOVT, such as ZROZ, EDV, and TLT, by the bond vigilantes. Other evidence that the bond vigilantes have gained a nascent control of interest rates, is seen in the weekly chart of the inverse of the Japanese Government Bonds, JGBS, rising in value.

Most definitely a war on the central banks is shaping up. The currency traders are attempting to call the Yen, FXY, higher, and the bond vigilantes are attempting to call the Interest Rate on the Japanese 10 Year Treasury bond higher.

Benton te writes Japan’s Nikkei crashes on rioting Japanese Government Bonds. a riot in Japan’s Governments Bonds has sent the Yen in a spike and simultaneously a crash in her stock markets. The Nikkei dived by 7.3%. First the upheaval in the JGBs. From Bloomberg, Japanese government bonds fell, with 10-year rates touching 1 percent for the first time in a year, on speculation the Federal Reserve will curb stimulus and the Bank of Japan will tolerate an increase in yields. Japan’s five-year note rate matched the highest in two years after Fed Chairman Ben S. Bernanke said yesterday the central bank may trim bond purchases if policy makers see indications of sustained economic growth. The BOJ injected 2 trillion yen ($19.4 billion) into the financial system to stem volatility following a circuit breaker in JGB futures trading. The reality is that this has little to do with Ben Bernanke’s latest statement but has everything do with the much touted elixir called “Abenomics”.

The Japan’s stock market crash has sent almost the entire Asian region in a sea of red. It isn’t the yen or Japan’s stock markets that will be the primary concern rather it is the JGB or Japan’s bond markets that will act as the driving force. The bond markets has been in a parallel universe or in patent disconnect with the stock markets, where we just saw today the realization of a Wile E Coyote moment. Previous soaring stock markets amidst unstable bond markets has finally led to a regression to the mean. As today has shown, stock markets are the last to know.

The increasing prospects of a Japan debt crisis could herald a return of a global Risk Off conditions. On the other hand, if the BOJ continues to massively inflate; such crisis may metastasize into a currency or a yen crisis or a combo of both. Everything now will depend on the how Japanese policymakers react and how the global financial markets will respond to them. Remember this isn’t just a Japan affair, but given the immense build up of global bubbles, including the Philippines, all it needs is a trigger for all of them to pop. Japan could play such a role. Today’s rout in the Japanese financial markets is a taste of the blowback from populist unsustainable inflationist policies.

The lowering of SDA rates has been implemented allegedly to discourage the inflow of foreign portfolio investments that will likewise “temper” the appreciation of the local currency the peso. Moreover, lowering SDA rates has been supposedly meant to encourage “banks to withdraw some of their funds parked in the BSP, thereby increasing money circulating in the economy”. BSP’s Tetangco further dismissed the threat of inflation risks from such actions [10].

So by redefining inflation as hardly a consequence from additional supply of money, the BSP thinks that they can wish away inflation through mere edict. Yet if “inflation is always and everywhere”, according to the illustrious Nobel laureate Milton Friedman [11], “a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output”, then the BSP’s policies will backfire pretty much soon.

Unleashing or emancipating part of the record holdings of 1.86 trillion pesos (as of mid February) of SDAs will intensify the inflation of the domestic credit bubble, fuel and exacerbate the manic phase of “bubbly behavior” of property and equity markets and subsequently prompt for a possible spillover to price inflation. Thus political efforts to attain “financial stability” will lead to the opposite outcome: price instability and the risks of greater financial volatility. Such policies, in essence, underwrite bubble cycles and stagflation. In short, BSP actions on SDAs can be analogized as playing with fire, and those who get burned will be the public. And today’s correction phase in the PSE will likely be ephemeral. And the potential shift from SDAs to the market will serve as another enormous force that will underpin the coming rally in the Phisix that would lead to the 10,000 levels.

I comment that as it turned out, since March 17, 2013, the time of the writing of the article, the chart of Philippines, EPHE, showed a strong rise from 38.02, to a market high on May 15, 2013 at 43.47, to trade lower on May 23, 2013 at 41.88.

A see saw destruction of fiat money, that is currencies, credit and stock wealth, has commenced as the world central banks’ monetary policies have crossed the Rubicon of sound monetary policy, making “money good” financial assets bad.

The ongoing monetization of debt by the world central banks over the years, with injection of Trillions of liquidity into international securities markets. and now with Global ZIRP, having come about through the announcement of Kuroda Abenomics, and with the recent interest rate reduction by the ECB, the tipping point of the inflationary benefits of monetary expansion, if they can be called that, has been reached.

Debt deflation, that is currency deflation, is underway, and is responsible for the strong sell of Australia Dividends, AUSE, Westpac Banking, WBK, Australia, EWA, and most significantly the Australian Small Caps, KROO, as well as New Zealand, ENZL.

The Risk Off ETN, OFF, is now increasing in value, communicating that risk appetite is turning to risk aversion.

The word scheme is not a pejorative word; the word scheme is defined as a plan, design, or program of action to be followed. Liberalism was the age of investment choice, and was marked by a number of investment schemes. Nation investment, EFA, and Small Cap Nation Investment, IFSM, as well as Global Industrial Production, FXR, were investment schemes; another for example was leveraged buyouts, PSP. Now, with the currency traders and bond vigilantes calling the world central banks to account, these schemes are starting to fail.

Authoritarianism is the age of diktat, and its schemes include bank deposits bailins, levying of additional taxes, public private partnerships, austerity measures, capital controls, and sale of a country’s central bank’s gold reserves.

Authoritarianism’s schemes come by diktat of sovereign regional leaders, such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, all for regional security, stability, and sustainability. In the age of Authoritarianism, the only forms of genuine wealth, will be diktat and physical possession of gold, that is gold bullion or bullion in online trading vaults such as Bullion Vault.

2E) … On Friday, May 24, 2013

Investors deleveraged and derisked out of stocks again today. World Stocks, VT, traded 0.6% lower; these included:

The chart of the US Dollar, $USD, shows a 0.2 trade lower on the day to close down, 0.8%, for the week at 83.69.

Currencies trading higher lower included the Australian Dollar, FXA, -1.0, the Brazilian Real BZF, -0.6,, Emerging Market Currencies, CEW -.0.4, and the Canadian Dollar, FXC -0.4. And Currencies trading lower included the Swiss Franc FXF, and the Japanese Yen, 0.7%.

This week, the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, as is seen in the chart of the Steepner ETF, STPP, establishing a breakout, resulting in the destruction of US Government Debt, GOVT, by the bond vigilantes as they called the Inerest Rate on the US Ten Year Note, ^TNX, higher to 2.01%.

Mike Mish Shedlock writes Greek debt unchanged since 2010; EU to ive Greece still more time; More time is useless. Greece was supposed to get it’s debt to GDP ratio to 100% by 2012, then 100% by 2013, then 110% by 2014. Now Jeroen Dijsselbloem, president of the Eurogroup finance ministers, says Greece may get still more time to meet fiscal targets. And the alleged level of debt sustainability keeps rising all the while. Greek Debt remains unchanged after massive bailouts and haircuts. Note that the sustainable level of debt is now 124% of GDP, ratcheted up numerous times in the past couple of years. By now it should be readily apparent the situation is totally and completely hopeless. Greece will not reduce debt to 124 percent of GDP by 2020 from an estimated 173 percent this year, unless of course Greece defaults.

Marcus Day of WSWS reports Poverty skyrockets in US suburbs. According to a new report by the Brookings Institution, poverty rose more than 64 percent in US suburbs from 2000 to 2011.

Emily Badger of The Atlantic Cities writes Kneebone and Berube have built individual profiles of suburban poverty for each of the country’s 100 largest metros, underscoring that a problem many keep at arm’s reach is closer than people expect. These are really shared challenges,” Kneebone says. “The more people can recognize that their community is a part of this trend, that maybe their neighbor is affected by growing poverty, that hopefully would help galvanize some action around this. Many suburbs, for instance, don’t have the kinds of public transit networks that can connect impoverished neighborhoods to job opportunities. And it’s significantly harder to address poverty through transportation when low-income households in need of it live dispersed over larger areas. Suburbs also simply lack the built-in networks of service providers that have grown up over decades in inner-city communities. All of this means that if the geography of poverty has dramatically changed over the last decade, we’ll have to spend the next decade (and likely more) thinking about how to address it in its newest forms.

Lornet Turnbull of The Seattle Times reports Poverty hits home in local suburbs like South King County. For the first time, there are more poor people living in American suburbs than in the nation’s big cities, according to new findings by the Brookings Institution. South King County is particularly “eye-opening,” the researchers say. Nowhere is suburbanization of poverty more evident than in South King County, where affordable housing has drawn immigrants and refugees coming here from across the globe as well as low-income families forced from Seattle by skyrocketing housing costs.

The findings are contained in a new book: “Confronting Suburban Poverty in America,” which examines this trend in the 100 largest metropolitan areas across the country, including the Seattle metro area, where 3.5 million people are spread across King, Snohomish and Pierce counties.

Incredible diversity. Classrooms in schools across South King County teem with a mix of cultures and in many of the area’s school districts, more than 100 languages are spoken. Cities face increased need for interpreter services, and schools for specialized language classes. Some city leaders bemoan the high costs of diversity and grapple with how to engage this new population. “You have this incredible refugee population coming from all corners of the earth and landing in Tukwila and communities next door, joining longtime middle-class families that have been there for decades …” Berube said. “There’s incredible diversity that comes with that and challenges for a small community to assist with integration.” Some community leaders are trying to understand and address the challenge, Berube said.

But “there are others who might have thought: ‘all these immigrants come into our communities, stressing our schools

3) … Summary

The week ending Friday May 24, 2013, was a pivotal day in economic life and political life. With all forms of fiat wealth, Stocks, VT, Commodities, DBC, Major Currencies, DBV, Emerging Market Currencies, CEW, and Credit, AGG, trading lower, on the Congressional testimony of US Federal Reserve Chairman Ben Bernanke signaling a cautious track on bond buying, and minutes of the Fed Meeting providing a blurred picture of Federal Reserve policy, Jesus Christ, in dispensation, Ephesians 1:10, has fully pivoted the world from the old economy to the new economy; that is 1) from the paradigm of liberalism to the paradigm of authoritarianism, 2) from the fiat money system to the diktat money system, and 3) from the banker regime of US Dollar hegemony to the beast regime of regional governance, totalitarian collectivism, debt servitude and austerity, Revelation 13:1-4, also known as the ten toed kingdom of regional governance, Daniel 2:25-45.

It is sovereignty that provides seigniorage, that is moneyness. Fiat money has become a warped and twisted thing, and it follows that democratic governance has failed and can no longer provide a trustworthy basis for investment choices. Diktat money is rising to replace to fiat money; it was born out of the Cyprus Bank Deposit Bailin, and is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity measures that are experienced, such as heavy losses on large bank deposits via bailins, levying of additional taxes, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.

Doug Noland writes in Kuroda’s Gambit, Playing With Fire. The Bank of Japan has appeared to support a much weaker yen, while believing its aggressive bond purchases would place an ongoing ceiling on bond yields. But with debt approaching 240% of GDP and its financial institutions large (leveraged) holders of low-yielding government debt, a spike in market yields would both impair Japan’s financial system and thrust its fiscal position into precarious debt trap dynamics.

Initially, the global speculators were not too concerned with eventual outcomes. Their focus was on the BOJ’s massive liquidity injections, yen weakness and prospects for Japanese institutions and retail investors to flee Japan in search of higher returns elsewhere. Suddenly, another $80bn or so was combined with the Fed’s $85bn monthly quantitative easing for liquidity injections unlike anything ever experienced by booming global markets. Global equities went into melt-up mode, global sovereign yields in melt-down and risk premiums generally collapsed to multi-year lows – in the face of a weakening global economic backdrop and mounting fragilities. Corporate debt issuance, already at record pace, inflated to even further extremes, including deteriorating quality at record low yields! Well, Financial Euphoria too often proves fleeting.

The current bout may have already begun to dissipate. Monetary policy that was to propel securities prices higher is suddenly viewed in somewhat different light. Japan’s Nikkei equities index was hammered 7.3% on Thursday. After trading as high as 15,943 mid-week, the index briefly touched 14,000 on Friday before ending the week at 14,612. Notably, the Japanese government debt market has of late made their equity market appear relatively stable. Trading as low as 55 bps early in the month, Japan’s 10-year JGB yields traded briefly at 1.0% Thursday before aggressive BOJ buying forced yields back down to 82 bps by week’s end. When a fledgling central bank chief – in the midst of a radical and untested experiment in monetary inflation – promises to stabilize a nearly $14 TN bond market, well, it’s time to begin worrying.

And my guess is that’s exactly what some of the hedge funds and sophisticated leveraged players began to do this week. Time to begin taking some chips off the table.

The Kuroda Gambit was seen unleashing enormous amounts of liquidity upon global markets. At least this perception was spurring a collapse of sovereign yields and risk premiums around the globe. Those caught short melting up risk markets were forced to run for cover – virtually everywhere. Those hedging various risks were forced to throw in the towel, while those cautiously underinvested in rapidly rising markets had little choice but to throw caution to the wind (“capitulate”).

And after spiking to record highs on Wednesday, Germany’s DAX equities index, EWG, reversed course and sank 2.6% in two sessions. Thursday and Friday sessions saw the yen rally 2% against the dollar.

Generally, the emerging currencies continue to trade poorly. The Colombian peso fell 2.0% this week, with the Chilean peso and Mexican peso 1.5% lower. The Indian rupee fell 1.4%, the South Korean won 0.9%, the Philippine peso 1.0% and the Peruvian new sol 1.4%. The so-called commodities currencies remained under pressure. The South African rand was hit for another 1.8%. The Brazilian real fell 0.8%, the Australian dollar 0.8% and the Canadian dollar 0.4%.

Commodities prices generally remained under pressure. The Goldman Sachs Commodities index fell 1.2% this week, increasing 2013 declines to 3.4%. Crude oil dropped 2.2%. Curiously, Lumber futures declined another 2% this week, having now dropped about a third from March highs. Nickel, Soybeans, Cocoa, Palladium and Coffee all declined this week.

Here at home, the stock market was resilient, while other indicators pointed to tinges of heightened risk aversion. Ten-year Treasury yields jumped above 2.0% for the first time since March. Curiously, benchmark MBS yields jumped 13 bps to the highest level in a year. After beginning the month at 2.28%, MBS yields ended the week at 2.82%. And after dropping to the lowest level since 2007, junk bond CDS prices jumped 19 bps in two sessions.

And he relates The U.S. dollar index slipped 0.7% to 83.70 (up 4.9% y-t-d). For the week on the upside, the Japanese yen increased 1.9%, the Swiss franc 1.2%, the euro 0.7%, the Danish krone 0.7%, the Swedish krona 0.7%, the New Zealand dollar 0.4%, the Norwegian krone 0.4% and the Taiwanese dollar 0.2%. For the week on the downside, the South African rand increased 1.8%, the Mexican peso 1.5%, the South Korean won 0.9%, the Australian dollar 0.8%, the Brazilian real 0.8%, the Singapore dollar 0.4%, the Canadian dollar 0.4%, and the British pound 0.3%.

And he posts that Lisa Abramowicz of Bloomberg reports Wall Street banks are expanding holdings of speculative-grade bonds as prices fall from record highs with investors retreating from exchange-traded funds that buy the debt. The 21 primary dealers that do business with the Federal Reserve increased their net positions in junk-rated debt by 37% to $7.7 billion in the two weeks ended May 15, 2013.

Under liberalism bankers, corporations, government, entrepreneurs, and citizens of democracies were the legislators of economic value and were the legislators of economic life. Under authoritarianism, currency traders, bond vigilantes and nannycrats working both in public private partnerships and in regional governance, are the legislators of economic value and are the legislators that shape one’s means and one’s ends.

A see saw destruction of fiat money, that is currencies, credit and stock wealth, has commenced as the world central banks’ monetary policies have crossed the Rubicon of sound monetary policy, making “money good” financial assets bad. In the age of Authoritarianism, the only forms of genuine wealth, will be diktat, and physical possession of gold, that is gold bullion or bullion in online trading vaults

such as Bullion Vault.

Gold Mining Stocks traded higher this week, GDX +4.3, GDXJ +6.5.

The trade lower in Major World Currencies, DBV, -1.2%, and Emerging Market Currencies, CEW, -0.7%, communicates that competitive Currency Devaluation is underway.

Aggregate Credit, AGG -0.4 %, with JNK -0.7, EMB -1.5 and UJB -1.7.

World Stocks, VT, -1.8 %

Transports, XTN -1.6

Industrials, XLI -1.0

Global Industrial Producers, FXR -1.0

Asia Excluding Japan, EPP -4.5

Nation Investment, IFSM -3.9

Small Cap Nation Investment, EFA -2.5

Emerging Markets, EEM -2.5

US Stocks, VTI -1.2

European Stocks, VGK -1.0

The Russell 2000, IWM -1.2.

The chart of the S&P 500, $SPX, SPY, shows a 1.1% trade lower for the week.

A report on sovereignty and seigniorage as of the week ending Friday May 17, 2013

1) … Last week, with the commencement of competitive currency devaluation on Friday May 10, 2013, the world’s economic and political paradigm pivoted from Liberalism to Authoritarianism.

Last week, as currency traders called the individual currencies such as the Australian Dollar, FXA, the Swiss Franc, FXF, the Indian Rupe, ICN, the Swedish Krona, FXS, the Euro, FXE, the British Pound Sterling, FXB, the Brazilian Real, BZF, the Canadian Dollar, FXC, the Japanese Yen, FXY, as well as the Emerging Market Currencies, CEW, lower, the world transitioned from the economic and political paradigm of Liberalism to Authoritarianism.

With the trade lower in not only in Aggregate Credit, AGG, but also highly indebted Electric Utilities, XLU, the world pivoted from the age of investment choice, to the age of diktat; the era of Inflationism has ceased, and the epoch of Destructionism commenced.

The coordinated intensification by the central banks throughout the world for the reduction of interest rates, established Global ZIRP, and as reported by Bento te writing 511 Interest cuts and sluggish economic growth, is causing a blow off stock market top in World Stocks, VT

Austrian Economist Robert Wenzel of Economic Policy Journal writes More for the Krugman file. Paul Krugman just endorsed the mad money printing that has been launched in Japan under the rule of the new Prime Minister Shinzo Abe.

The words of Austrian Economist Ludwig von Mises, return in deja vu warning, as he wrote In the eyes of cranks and demagogues, interest is a product of the sinister machinations of rugged exploiters. The age-old disapprobation of interest has been fully revived by modern interventionism. It clings to the dogma that it is one of the foremost duties of good government to lower the rate of interest as far as possible or to abolish it altogether. All present-day governments are fanatically committed to an easy money policy. And, it is Ludwig von Mises who provides also writes providing insight into the end of the crack up boom in Liberalism’s money, relating The boom can last only as long as the credit expansion progresses at an ever-accelerated pace. The boom comes to an end as soon as additional quantities of fiduciary media are no longer thrown upon the loan market. But it could not last forever even if inflation and credit expansion were to go on endlessly. It would then encounter the barriers which prevent the boundless expansion of circulation credit. It would lead to the crack-up boom and the breakdown of the whole monetary system.

Aggregate Credit, AGG, collapsed, the week ending May 10, 2013, as is seen in International Treasury Bonds, BWX, US Government Bonds, GOVT, most notably, the Zeroes, ZROZ, the 30 Year US Government Bond, EDF, and the 10 Year US Government Bond, TLT, Mortgage Backed Bonds, MBB, as well as Long Duration Corporate Bonds, BLV, Corporate Bonds, LQD, International Corporate Bonds, PICB, all falling lower as seen in their combined Google Finance chart.

In compliment of the currency traders, who have started a sell of the world currencies, the bond vigilantes have gained a nascent control of interest rates, as is seen in their call of the Interest Rate on the US Ten Year Note, ^TNX, higher to 1.95%, and a steepening of the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, seen in the Steepner ETF, STPP, steepening.

The world central banks’ monetary policies of Global ZIRP, have finally started to turn “money good” investments, bad. A case in point is Australia’s Westpac Banking, WBK; in contrast, currency carry trade endowed, Lloyds Bank, LYG, rose strongly in a Global ZIRP grand finale finish. Failing of Global ZIRP, stimulated investors to derisk out of Nation Investment in Australia, EWA; in contrast Malaysia, EWM, rose strongly on Global ZIRP cool aid. And souring Global ZIRP, in particular the debt dynamics of Australia Dividends, AUSE, turned this investment lower, while investors pursued Pharmaceuticals, PJP, to its zenith. Another example of investors derisking on excessive credit policies, is the trade lower in Japanese Treasury Bonds, as seen in their inverse, JGBS, trading higher, in contrast Japan, EWJ, rose strongly.

It is sovereignty that provides order, begets seigniroage, that is moneyness, and prosperity. The rule of Liberalism’s democratic nation states provided a moral hazard, toxic credit, and global carry trade financed seigniorage, via the genius of the Milton Friedman Free To Choose fiat money system.

With Jesus Christ at the helm of the economy of God, as presented by the Apostle Paul in Ephesians 1:10, there will never ever be a free market, sound money system, as envisioned by the Libertarians, such as Lew Rockwell, Ron Paul, and Murray Rothbard, who Wikipedia relates advocated full reserve banking (“100 percent banking”)[62] and a voluntary, nongovernmental gold standard[24][63]

As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is

pivoting the world from Liberalism which featured the Banker’s Regime, Milton Friedman Free To Choose, fiat money system to Authoritarianism which features the Beasts’ Regime, regional governance, totalitarian collectivism, debt servitude, and austerity, diktat money system.

Diktat Money was born out of the Cyprus Bank Deposit Bailin and is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity schemes that are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability. CNBC reports Eurogroup Chief says France must speed up reforms. Jeroen Dijsselbloem, the president of the 17-nation euro bloc of nations, said France needs to accelerate its reform program after the country was given a two-year extension to meet European Union budget-deficit targets. I comment, most assuredly, God has put, and is putting Liberalism’s leaders, such as Milton Friedman, Phil Gramm, and Robert Rubin, out to pasture, and bringing in Authoritarianism’s new leaders. Yes, new leaders for a new age.

The Eurozone has been and will continue to be the lynchpin in Christ’s Dispensation, Ephesians 1:10, to bring democracy and investment choice to completion, that is its fulfillment, and introduce regionalism and diktat to fruition. With three Greece Bailouts, and now the Cyprus Bank Deposit Bailin, diktat is coming to underwrite mankind’s economic and political activities, as Jesus Christ is bringing forth a New Regime, that is the Beast Regime of regional governance, totalitarian collectivism, and debt servitude, Revelation 13:1-4, which will be accompanied by the rise to power of a New Pharaoh, Revelation 13:5-10, and a New Monetary Pope, Revelation 13:11-18.

To accomplish His aims, He is unleashing the Four Horsemen of the Apocalypse. The First Horseman of the Apocalypse is the Rider on The White Horse, who has a bow, without any arrows to effect a bloodless global and economic coup d’etat, to transfer the baton of sovereignty from nation states to regional leaders and regional sovereign bodies such as the EU Finance Ministers and the ECB, Revelation 6:1-2.

This monster of authoritarian rule, is also seen in the prophet Daniel’s Statue of Empires, given in interpretation of King Nebuchadnezzar’s dream as presented in Daniel 2:25-45, where ten toes of iron diktat and clay democracy form out of the iron hegemony of a great nation, that is the US, and a company of nations, that is the British Empire, which whose domination was foretold in the Bethel, that is House of God, prophecy of Genesis 35:11.

China, YAO, Russia, RSX, the Emerging Market Finanancials, EMFN, and the Emerging Market Infrasturucture, EMIF, as well as Australia, EWA, and Australia Dividends, AUSE, and New Zealand, ENZL, are reflecting that the world central bank’s monetary policies have crossed the rubicon of sound monetary policies allowing bond vigilantes to call interest rates higher globally commencing the destruction of credit, AGG. Another word for credit is trust. Under Liberalism, investors trusted in the world’s sovereign nation states, their central bank chiefs, such as Ben Bernanke, Mario Draghi, and Hiroki Kuroda/Shinzo Abe, and policies of Global ZIRP, to leverage up both equity and debt investments. That trust is beginning to evaporate now that currency traders are calling curencies lower, and the bond vigilantes are calling interest rates higher.

Liberalism’s moral hazard has finally come of age and is beginning to sour some investment trust. Debt deflation is underway destroying fiat wealth, beginning frist with Credit, AGG, and currences, such as the Australian Dollar, AUD, and the New Zealand Dollar, NZD.

The crack up boon in equities marks the end of Liberalism’s speculative leveraged investing, as seen in the closed end equity fund, CSQ, is running higher while closed end deb,t PTY, is running lower.

One can follow the destruction of fiat wealth by following the fifty common ETFs seen in this Finviz Screener.

Greek Crisis Net provides the Social Europe Jürgen Habermas article Democracy, solidarity and the European crisis. “The European Union owes its existence to the efforts of political elites who could count on the passive consent of their more or less indifferent populations as long as the peoples could regard the Union as also being in their economic interests, all things considered.”

Jürgen Habermas continues, “The Union has legitimized itself in the eyes of the citizens primarily through its outcomes and not much by the fact that it fulfilled the citizens’ political will”.

I comment that The Union is legitimate in that it owes its unity to the genius of Federalist leaders committed to pooled sovereignty; these include Herman van Rompuy, Jean-Claude Trichet, Angela Merkel, Jean-Claude Juncker, Olli Rehn, Jose Manuel Barroso, and Mario Draghi who provided LTRO 1, LTRO 2, and OMT. It is this mindset of pooled sovereignty that is the basis for “more Europe” diktat. Diktat Money was born out of the Cyprus Bank Deposit Bailin and is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, when austerity schemes are experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.

Jesus Christ, working in dispensation, that is the household administration for the completion and fulfillment of every age, era, epoch and time period, is pivoting the world out of Liberalism which featured the Banker’s Regime, Milton Friedman Free To Choose, fiat money system; and into Authoritarianism which features the Beasts’ Regime, regional governance, totalitarian collectivism, debt servitude, and austerity, diktat money system.

Habermas’s works resonate within the traditions of Kant and the Enlightenment and of democratic socialism through his emphasis on the potential for transforming the world and arriving at a more humane, just, and egalitarian society through the realization of the human potential for reason, in part through discourse ethics.

Within sociology, Habermas’s major contribution was the development of a comprehensive theory of societal evolution and modernization focusing on the difference between communicative rationality and rationalization on one hand and strategic / instrumental rationality and rationalization on the other. His defence of modernity and civil society has been a source of inspiration to others, and is considered a major philosophical alternative to the varieties of poststructuralism. He has also offered an influential analysis of late capitalism.

Habermas perceives the rationalization, humanization and democratization of society in terms of the institutionalization of the potential for rationality that is inherent in the communicative competence that is unique to the human species. Habermas contends that communicative competence has developed through the course of evolution, but in contemporary society it is often suppressed or weakened by the way in which major domains of social life, such as the market, the state, and organizations, have been given over to or taken over by strategic/instrumental rationality, so that the logic of the system supplants that of the lifeworld.

Habermas has expressed optimism about the possibility of the revival of the public sphere.[19] He discerns a hope for the future where the representative democracy-reliant nation-state is replaced by a deliberative democracy-reliant political organism based on the equal rights and obligations of citizens.[19] In such direct democracy-driven system, the activist public sphere is needed for debates on matters of public importance and as well as the mechanism for that discussion to affect the decision-making process.

Habermas is famous as a public intellectual as well as a scholar; most notably, in the 1980s he used the popular press to attack the German historians Ernst Nolte, Michael Stürmer, Klaus Hildebrand and Andreas Hillgruber. Habermas first expressed his views on the above-mentioned historians in the Die Zeit on July 11, 1986 in a feuilleton (opinion piece) entitled “A Kind of Settlement of Damages”. Habermas criticized Nolte, Hildebrand, Stürmer and Hillgruber for “apologistic” history writing in regard to the Nazi era, and for seeking to “close Germany’s opening to the West” that in Habermas’s view had existed since 1945.[22] He argued that they had tried to detach Nazi rule and the Holocaust from the mainstream of German history, explain away Nazism as a reaction to Bolshevism, and partially rehabilitate the reputation of the Wehrmacht (German Army) during World War II. Habermas wrote that Stürmer was trying to create a “vicarious religion” in German history which, together with the work of Hillgruber, glorifying the last days of the German Army on the Eastern Front, was intended to serve as a “kind of NATO philosophy colored with German nationalism”[23]

Does this decline of rationality signal an opportunity or a deep crisis for religion itself?

In this debate a recent shift of Habermas became evident — in particular, his rethinking of the public role of religion. Habermas writes as a “methodological atheist,” which means that when doing philosophy or social science, he presumes nothing about particular religious beliefs. Yet while writing from this perspective his evolving position towards the role of religion in society has led him to some challenging questions, and as a result conceding some ground in his dialogue with the Pope, that would seem to have consequences which further complicate the positions he holds about a communicative rational solution to the problems of modernity.

In an interview in 1999 Habermas stated that, “For the normative self-understanding of modernity, Christianity has functioned as more than just a precursor or catalyst. Universalistic egalitarianism, from which sprang the ideals of freedom and a collective life in solidarity, the autonomous conduct of life and emancipation, the individual morality of conscience, human rights and democracy, is the direct legacy of the Judaic ethic of justice and the Christian ethic of love. This legacy, substantially unchanged, has been the object of a continual critical reappropriation and reinterpretation. Up to this very day there is no alternative to it. And in light of the current challenges of a post-national constellation, we must draw sustenance now, as in the past, from this substance. Everything else is idle postmodern talk.”[37][38][39][40]

Habermas talks about the emergence of “post-secular societies” and argues that tolerance is a two-way street: secular people need to tolerate the role of religious people in the public square and vice versa1]

I comment that Isms they are important for they define a person and establish a life view.

An inquiring mind asks, what is an ism? An ism is defined as a life process, with an inherent authority, that creates a state of being and claims lives. There be many isms; each is based upon an idea that is in short supply, and work through inherent authority, to produce a identity and experience which claims the life of an individual.

Beginning in 1913, with the creation of the Creature from Jekyll Island up until the First Greek Bailout in May of 2010, Liberalism and its principal investment choice ruled decisively as the world’s paradigm for economic and political experience. But increasingly Authoritarianism with its diktat is rising out of the Mediterranean nation states of Portugal, Italy, Greece, and Spain, that is the PIGS, to be the ruling architecture for mankind’s political and economic experience.

Liberalism’s dynamo of investment choice, is winding down capitalism, European socialism, and Greek Socialism, on the exhaustion of the world central bank’s monetary authority to grow corporate profits and stimulate global trade. Authoritarianism’s dynamo of diktat, is powering up regionalism, as European leaders work to provide for regional security, stability and sustainability.

Dispensationalism is the concept, that there is a God, that He has a Son, Jesus Christ, who has universal authority, that He supervises all authority in heaven and in earth, and is working in dispensation, that is the administrative plan of God, for the fullness and completion of every epoch, era and time period, Ephesians 1:10, and is producing the Element of Life, Colossians 3:1-4, in people, thereby creating saints, which stand out as His elect, that is His chosen, from the aints, and that He, Jesus Christ, is dispensing himself into the believer in Christ, as one’s All Inclusive Life Experience, Colossians 3:11.

The dispensationalist view is different, from all other life views. The dispensationalist view comes out of sound bible doctrine, and believes and trusts in Christ, and responds daily to God’s will. All other views come from the fiat, that is the mandate, of will worship in philosophy or religion, Colossians 2:23. For example the libertarian view, is that one is a sovereign individual, and that one seeks liberty, specifically the use of personal property free from government interference in a gold based money system. Libertarianism claims lives establishing them as Free Individuals. This contrasts with the Dispensationalist view that only God is sovereign, and that man’s will died in the garden experience with Adam and Eve, and that Christ alone makes one free, and that He, has a group of Free People, known as the Church, that is the called out ones.

Authors and speakers on dispensationalism include,

Witness Lee, The Recovery Version of the Bible, and The Economy of God

The EU owes its existence to Jesus Christ, who in dispensation, that is the economic and political oversight of God, Ephesians 1:10, developed the Eurozone as a currency union, to mature and complete socialism as a moral hazard nation state debt based and currency carry trade based economic and political experience, as means of producing Liberalism’s Peak Sovereignty and Peak Seigniroage. that is Peak Moneyness; and specifically to produce Greek socialism as the most extreme form of non competitive and clientelism pork and privilege economic system on planet earth.

Out of the Mediterranean Sea sovereign and debt currency crisis, that is out of the PIGS profligacy, Jesus Christ will install a One Euro Government, that is a European Superstate with headquarters in Brussels and Berlin, Revelation 13:1-4, which will establish a regional lord, Revelation 13:5-10, a monetary pope, Revelation 13:11-18, and monetary cardinals. Nannycrats from banking, government, and industry will emerge to form councils of wise men, that is statist public private partnerships, to oversee regional factors of production and regional economic activity.

Liberalism was an economic and political experience that was fathered by the great Milton Friedman, whose Banker and democratic nation state, free to choose, floating currency system, was the backbone of the fiat money system, which featured investment choice.

Currencies are no longer floating, they are sinking, and interest rates are up across the board on higher Treasury interest rates, most notably in Japan. A see-saw destruction of fiat wealth is now underway. Equities, will soon be pulled lower by debt deflation, that is by currency deflation. And all fiat wealth, Credit, AGG, Currencies, DBV, CEW, and Equities, VT, will be trading lower, as Friday May 10, 2013, was the pivot point from Liberalism to Authoritarianism, with the rise higher in the interest rate on the 10 Year US Note, ^TNX, and the dismissal announcement of 15,500 Greek state workers.

Gold, GLD, is a both a commodity, and a metal. The spot price of gold, $GOLD, fell 6.1% lower to close at $1,350. In Authoritarianism’s epoch of Destructionism, the physical possession of gold, either in bullion form or in Internet Trading Vaults, such as Bullion Vault will be the sold means of preserving wealth. Gold Miners, GDX, -11.5%, GDXJ, 14.-2%, SIL, -11.1%, SILJ, -8.0%, and SSRI, -9.7%.and Uranium Miners, URA, -5.7%, Industrial Miners, PICK, -2.8, Coal Miners, KOL, -2.3

Mike Mish Shedlock writes Breakout in Japanese 10-Year Bond Yield. All week, yields on benchmark 10-year Japanese government bonds (JGBs) have been rising, causing their value to fall, and their inverse ETF, JGBS, to rise. I comment that Japan’s public debt stands at $10 trillion, or 245pc of GDP; and its life insurers and pension funds are loaded to the gills with these bonds. No developed country has ever before recorded such a high level of public debt.

National Bank of Greece, NBG, soared 82.4% parabolically higher, taking Greece, GREK, 17.8% higher, on a tide of investment coming from hedge funds which in turn has been based upon a rise in the value of Greek Treasury debt.

FT reports Top hedge funds bet on Greek banks Some of the world’s leading hedge funds are pouring money into the Greek banking sector in expectation of huge potential returns, even as the country struggles to right its economy in the face of deep government spending cuts. Farallon Capital, York Capital Management, QVT Financial and Dromeus are among hedge funds that are set to participate in the recapitalisation of the country’s banks. The hedge funds are among the largest institutions involved in a €550m share issue from Alpha Bank, Greece’s second-largest lender, set for completion in mid June, said people familiar with the plans. Others understood to be looking at bank investments include Third Point, which last year made $500m by snapping up cheap Greek government bonds and CQS, Europe’s largest credit hedge fund. Farallon, York, CQS and Third Point declined to comment. QVT did not respond to requests for comment on Friday. Some hedge fund managers believe a wager on the country’s banks could prove even more lucrative than other bets on the recovery of Greek markets.

WSJ reports Greek government bonds have been on a tear since June. The latest sign is that hedge funds and private banks are seeking out bonds issued by Greek companies, which are tapping credit markets in increasing numbers. Among the buyers are York Capital Management, Dromeus Capital, LNG Capital and CQS LLP. Third Point LLC, run by Daniel Loeb, is starting a hedge fund focused on buying Greek assets.

Gabriela Lopez of Reuters reports Struggling with slowing home sales and a lack of liquidity, Mexico’s top three homebuilders may have to seek bankruptcy protection if they fail to reach an agreement with creditors in the short term. Home sales at Geo, Urbi and Homex plummeted in the first quarter, exacerbating the companies’ long-running cash shortfalls and, in some cases, leading them to miss payments on debt and derivatives. Analysts are skeptical that restructuring efforts will work, arguing that at least in the cases of Geo and Urbi, the companies will likely have to rely on protection under Mexico’s version of U.S. Chapter 11, known as Concurso Mercantil.

Brendan Case of Bloomberg reports Empresas ICA SAB’s bond plunge is showing that Mexican homebuilders aren’t the only construction companies losing favor in the country’s debt market because of President Enrique Pena Nieto’s policies. ICA’s $500 million of notes due in 2021 have tumbled 9.37 cents in the past two months as the company reported quarterly earnings that fell short of analysts’ estimates, pushing up yields 1.59 percentage points to 8.96 percent… Bond buyers are souring on ICA, Mexico’s biggest construction company, after it said revenue from building projects dropped 41% in the first quarter.

3) … As revealed in the last book of the Bible, The Revelation of Jesus Christ, the sovereign Lord God, is establishing a new order consisting of fifteen New Things. These New things establish the Dispensationalist’s Creed which is based upon Ephesians 1:10, the biblical revelation that Jesus Christ, is operating in dispensation, that is the household management plan of God to complete and fulfill all things in every age, epoch, era and time period

12) a New Religion (from religions and philosophies based upon the worship of one’s own will, to a mandatory one world religion consisting of emperor worship, and for the elect, faith in Christ),

13) a New Money System, (from the fiat money system, to the diktat money system).

14) a new Reality, (from human experience, to the experience of the divine nature; where the elect are called to live in godliness, 2 Peter 1:6, mainly manifest in the fruits of the spirit, and experience Christ as one’s life, Colossians 3:4, and one’s all inclusive life experience, Colossians 3:11. They keep the word of His endurance, and shrink not from His Name, and thereby live in His presence and authority. They live a live of biblical seperation. They practice the New Man in Christ, mortifying that is putting to death the carnal desires that come up through temptation, so as to prevent the pain and dislocation that comes from stumbling and falling in sin. And live a life of ethical regard; for example, they pursue peace with all men, defraud no one, and do not make merchandise out of others)..

David Ben-Gurion led Israel in the 1948 war which the Israelis referred to as the War of Independence and thus Israel expanded the territory awarded by the British Empire under the Balfour Declaration of November 2, 1917, to become a nation state. His nation craft was one of many events that diminished the global hegemonic power of the British Empire. About.com Geography relates that in 1954, Egypt and the UK signed a seven year contract that resulted in the withdrawal of British forces from the canal area and allowed Egypt to take control of the former British installations. The handing back of Hong Kong to China on July 1, 1997, closed the final chapter on the British Empire as it was the last significant colony.

Thus the first of the two global hegemonic powers to fall, as seen in bible prophecy of King Nebuchadnezzar’s Statue of Empires, Daniel 2:25-45. was the British Empire. The other take names and kick-ass, commerce, and debt based global hegemonic power, is the United States.

Liberalism’s Banker Regime was embraced by President Nixon, who took the US off the gold standard and was able to fund the Vietnam War. In 1997, neoconservative writers and pundits advocated aggressive US foreign policies and rallied support for American global leadership via the Project for the New American Century, PANC, which according to William Rivers Pitt writing in Information Clearing House, resulted in the organization of the US military into regions and a Blood for Oil War in Iraq. Al Jazeera reports that dozens of US and allied forces present a globe-spanning American archipelago of bases. The goal of the Free To Choose Floating Currency Banker Regime was never ever to promote Freedom, but rather to ground, that is make Democracy firm, that is make the currencies of democratic republics reliable for nation investment. Democracy was strengthened by Free Trade Agreements, cooked up by think tanks, which opened the door for corporations to grow profits and expand global growth and trade.

The world central banks’ monetary policies of Cordinated ZIRP and Easing, known as Global ZIRP, facilitated Inflationism to the point where Nation Investment, EFA, Small Cap Nation Investment, IFSM, has risen to new highs this week reflecting Peak Democracy,.which gave seigniroage, that is moneyness, to Global Industrial Producers, FXR, producing Peak Global Industrialization seen in Induatrials, XLI, Small Cap Industrials, PSCI, as well as Transportation,XTN, topping out.

Liberalism’s Banker Regime was greatly empowered by the the repeal of the Glass Steagall Act, spearheaded by Representative Jim Leach, Senator Phil Gramm, and Robert Rubin.

Scott Grannis in Come and get it, communicates that Liberalism featured Free Money. With the deductibility of mortgage interest and inflation, a 30-yr fixed-rate mortgage is essentially free money. The CPI has averaged about 2.5% for the past 15 years, and most folks with a jumbo loan should be able to deduct about 35% of the interest. The after-tax interest cost would be about 2.5%, and subtracting inflation of 2.5% gives you zero.

Through trust in monetary expansion policies of the world central banks, the world stands at Peak US Hegemony, as Liberalism’s Banker Regime has succeeded in coining Peak Money, that is Peak Wealth, measured by World Stocks, VT, rising to a new high. The crack up boom, which came on rising credit of all types, has reached its zenith, while, the world has passed through Peak Credit beginning in May, 2013, with Aggregate Credit, AGG, trading lower.

This the Golden Age of America. The online dictionary informs, a time period when some activity or skill was at its peak; and the Oxford dictionary defines, an idyllic, often imaginary past time of peace, prosperity, and happiness. the period when a specified art, skill, or activity is at its peak.

Sovereignty that begets seigniorage. Liberalism through the monetary policies of the world central banks has succeed in producing Peak Sovereignty and Peak Seigniorage.

Doug Noland reports weekly on sovereign wealth which has continued on to a new high stating: Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg’s Alex Tanzi – were up $656bn y-o-y, or 6.3%, to a record $11.126 TN. Over two years, reserves were $1.310 TN higher, for 13% growth.

And Mr. Noland reports weekly on discretonary US Wealth which has continued on to a new high stating: M2 (narrow) “money” supply increased $5.2bn to a record $10.540 TN. “Narrow money” expanded 6.6% ($651bn) over the past year

Authoritarianism’s fathers or starters are coming of age and include Angela Merkel and Nicolas Sarkozy. Spiegel reports have called for a region of true European economic government.

Mike Mish Shedlock writes of Cyprus Band Deposit Bailin Liar, liar, pants on fire; spoon-fed demands by the number. About that Cyprus shortfall, As I expected, it’s a lot bigger than the Troika expected, assuming you believe the Troika was telling the truth about the size of the needed bailout.

A leaked draft of the updated rescue plan, which emerged late on Wednesday night, revealed that the total bill for the bailout has risen to €23bn, from an original estimate of €17bn, less than a month after the deal was agreed – and the entire extra cost will be imposed on Nicosia.

Visiting Athens, the Cypriot parliament’s president, Yannakis Omirou, said the tiny island nation had been “served poison” by its EU partners.

The €23bn overall bill is larger than an entire year’s output from the Cypriot economy.

Cyprus hammered into submission.

Step by step, Cyprus has been hammed into submission. Its economy has been ruined for at least a decade.

Recall the original deal was €13bn. It is now €23bn.

Recall that Cyprus Popular Bank, Laiki, was supposed to have 30% losses. Guess what?

Spoon-fed demands by the number

Laiki 100% wiped out

Capital controls

Losses exceed the size of the entire Cypriot economy

Cyprus would have to sell its gold

The Cypriot Central Bank would lose its independence

Cyprus will go into an economic depression for a decade to pay for the “bailout”

Cyprus has been spoon-fed a pack of escalating demands by the Troika.

Had Cyprus initially understood the totality of what was going to happen, Cyprus may have done the right thing which should now be obvious: Tell the Troika to go to hell, default, exit the eurozone. It’s still not too late, but Cyprus needs to do so before it sells its gold.

Mark John and Ingrid Melander of Reuters report on May 16, 2013, France’s Hollande urges Euro Zone Government. At a press conference marking French President Francois Hollande’s first year in office, the powerful head of the large EU state called for an economic government for the euro zone. It would have its own budget, the right to borrow, a harmonized tax system, and a full-time president. Hollande said a future euro zone economic government would debate the main political and economic decisions to be taken by member states, harmonize national fiscal and welfare policies, and launch a battle against tax fraud.

This as Henry Samuel and Bruno Waterfield of the Telegrpah report France has fallen spectacularly out of love with the European Union and is now more Eurosceptic than Britain, a new study has found. The European project ‘now stands in disrepute across much of Europe’, concluded the Pew Research Centre, which described the EU as ‘the sick man of Europe’. Overall support for the EU has fallen among the French from 60% in 2012 to 45% in 2013. Germany is now the only country where a majority backs granting more power to Brussels. No European country, however, has become more swiftly ‘dispirited and disillusioned’ than France, the study of eight EU countries found. As economic gloom grips the country under Socialist president François Hollande, that support has plummeted to just 41%, making the French less in favour of the EU than the British, on 43%. ‘The stereotypical view is of Eurosceptics in Britain while we don’t think about Eurosceptics in France except for the (far-Right) Le Pen phenomenon,’ Bruce Stokes of Pew Research told the Daily Telegraph. ‘Perhaps we should take Euroscepticism in France more seriously than we have in the past,’ he said.

The Luminaries of Authoritarians are providing the few scarce ideas that are powering up the end times Beast Regime of regionalism, totalitarianism, and debt servitude, as foretold in bible prophecy of Revelation 13:-14. This monster is rising from EU sovereign default and from the banking crisis of the PIGS, that is the Mediterranean Sea nations of Portugal, Italy, Greece, and Spain.

It is the debt issuance, run away fiscal spending, national wage laws, anti-competitive legislation, and clientelism of European socialism and Greek socialism, as well as the excesses of the world central banks’ monetary policies that have crossed the rubicon of sound monetary policy, that has made “money good” investment bad, and will result in the collapse of the second iron leg of global hegemony, that being the US, and will result in the rise of the Ten Toed Kingdom of regional governance as seen in King Nebuchadnezzar’s Statue of Empires, Daniel 2:25-45.

Liberalism featured the fiat money system where sovereign nation states gave the seigniorage, that is moneyness, of investment choice to credit and currencies, producing a currency cary trade, toxic debt, and moral hazaad based prosperity.

Authoritarianism features the diktat money system where sovereign regional leaders and sovereign regional bodies provide the seigniorage of diktat, where mandates serve as currency, money and power, producing debt servitude and austerity.

Wealth can only be preserved by investing in and taking possession of gold, either in bullion form or by trading on Internet vaults such as Bullion Vault.

Since May of 2010, beginning with the announcement of Greek Bailout I, under the auspices of Herman Van Rompuy, I’ve been writing proclaiming the increase of pooled sovereignty; and now with the stocks rising to all time highs on investment mania, and with currencies trading lower since May 10, 2013, and credit trading lower since May 1, 2013, the sovereignty of democratic nation states has finally peaked; and Liberalism is genuinly and firmly passing from Liberalism to Auhoritarianism, at the hands of Jesus Christ working in dispensation, that is the economic and political administrative plan of God, Ephesians 1:10.

Many fail to appreciate the genius of Jesus Christ terminating the era of ivnestment choice and introducing the age of diktat; these include

European Socialists, such as the French and their president Hollande, a career socialist politician, who have eperienced agricultral production and distribution, and who have seen French real estate prices soar due in large part to the stability of French treasury debt and who have benefited from the sale of French municipal debt purchased by US Money Market Funds.

Trotskyists who believe that soicalism has been ursurped by capitalists.

Anarcho capitalists who are irate because of coordinated govenrment internvention in producing Global ZRIP

Jesus Christ being sovereign in all things and over all thing, Colossians 1:16-18, produced Peak Prosperity through US Dollar Hegemony of the USA financial and military empire as foretold in the Statue of Empire bible prophecy of Daniel 2:25-45, with the Israel prophecy of a great nation, that being the US, and a compnay of nations, that being the British Empire, with its financial center of the City of London, of Genesis 35:9-11.

Through the sovereigny of the Banker Milton Freidman Free to Choose Floating Currenecy Regime and the seigniorage of its financial system mint, that being the Too Big to Fail Banks, RWW, such as BAC, the World Money Center Banks, such as HBC, LYG, WBK, IRE, NBG, IBN, UBS, Regional Banks, KRE, such as RF, Global Creditors, such as V, IX, Asset Managers, such as BLK, Investment Bankers, KCE, such as JPM, Stock Brokers, IAI, such as NMR, TROW, Stock Exchanges such as CBOE, ICE, NYX, NYX, Mortgage REITS, such as IVR, ACAS, Residential REITS, such as SUN, SNH, Diversified REITS, such as WFC, Industrial REITS, such as CUBE, Office REITS such as SFI, STD, LSE, COR, and Real Estate Investors, such as BX, Jesus Christ, has produced Peak Stock Wealth, VT, Peak Nation Investment, EFA, Peak Small Cap Nation Investment, IFSM, Peak Industrial Production, FXR, and Peak US Large Cap Stock Wealth, seen in the chart of the S&P 500, $SPX, SPY, closing at 1,666, up 2.1% for the week.

An inquiring mind asks, Emulate Ron Paul, as the Daily Bell suggests, or imitate the Apostle Paul, as Scripture suggests?

Jesus Christ will oversee the destruction of all existing economic and political life as the pivots the world out of Liberalism and into Authoritarianism, in order that one might come to see Him as the Light of the world, John 8:12, and trust in Him for Life, Colossians 3:3-4, and as one’s All Inclusive Life Experience, Colossians 3:11.

If you are looking for Freedom, that is the right to use personal property and intellectual property without state intervention, I must tell you that you are wasting your time, as Jesus Christ never, ever intended that be a Free People anywhere outside of The Church, that is the collection of believers in Him, Jesus Christ, Savior and Lord God Almighty.

Liberalism featured a Free To Choose Floating Currency Baker Regime that awarded fantastic investment prosperity through the facilitation of moral hazard. Risk Assets such as PSP, PBD, IBB, FPX, BJK, CSD, performed quite well on the World Central Banks’ Cool Aid of Toxic Debt, which included Distressed Investments FAGIX, Junk Bonds, JNK, and Senior Bank Loans, BKLN, as well as their Cool Aid of Carry Trade Investing, such as the EUR/JPY, seen in the chart of FXE:FXY, which came on the purchase of Major World Currencies, DBV, Emerging Market Currencies, CEW, and sell of the Japanese Yen, FXY.

Now the individual currencies are falling in value, on competitive currency devaluation, terminating the Banker Regime, on debt deflation, as the bond vigilantes, have been calling interest rates higher globally since early May 2013, as the monetary policies of the world central banks have crossed the rubicon of sound monetary policy and have made “money good” investments bad.

The Eurozone has been and will continue to be the lynchpin in Christ’s Dispensation, Ephesians 1:10, to bring Liberalism’s democracy and investment choice to completion, that is its fulfillment; these have come to an end with the Cyprus Bank Deposit Bailin.

Now diktat is coming to underwrite mankind’s economic and political activities, as Jesus Christ is bringing forth a New Regime, that is the Beast Regime of Regional Governance, Totalitarian Collectivism, and Debt Servitude, Revelation 13:1-4, which will be accompanied by the rise to power of a New Pharaoh, Revelation 13:5-10, and a New Monetary Pope, Revelation 13:11-18.

To accomplish His aims, Juseus Christ is unleashing the Four Horsemen of the Apocalypse, the First Horseman of the Apocalypse is the Rider on The White Horse, who has a bow, without any arrows to effect a bloodless global and economic coup d’etat, to transfer the baton of sovereignty from nation states to regional leaders and regional sovereign bodies such as the EU Finance Ministers and the ECB, Revelation 6:1-2.

Now under Authoritarianism, seigniorage, that is moneyness, will no longer come from the talking heads of the world central bank; but rather from regional sovereign leaders and regional sovereign bodies, such as the ECB.

1) … On Monday April 6, 2013, Electric Utilities, XLU, traded 1.4% lower, as the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened, breaking out above 200 day moving average. A steepening yield curve, seen in the chart of the Steepner ETF, STPP, steepening, is deleterious to electric utility stocks, as they are loaded with debt, especially long term debt.

The electric utilities which had been doing better than their peer group traded strongly lower; these utilities, with their Long Term Debt to Equity Ratio, and yield are presented below:

AEP, 1.0 and 3.8% yield, -1.2%

DTE, 1.0 and 3.5% yield, -1.6%

NEE, 1.4 and 3.3% yield, -1.4%

D, 1.5 and 3.7% yield, -0.7%

PNW, 0.8 and 3.6% yield, -1.3%

WEC, 1.1 and 3.1% yield, -1.7%

CMS, 2.1 and 3.5% yield, -1.4%. This heavily indebted electric utility stock was one of the best performing utility stock in the last six months, as is seen in this ongoing Yahoo Finance chart. Under the development of Global ZIRP, seen in the trade higher of the Euro Yen Currency Carry Trade, EUR/JPY, that is FXE:FXY, beginning in August 2012, as well as an ongoing rise of Aggregate Credit, AGG, investors favored stocks that were debt laden, as the pursuit of yield ensued.

Action Forex, in its May 10, 2013, weekly chart article of the EURJPY is calling this carry trade pair higher, yet the detailed Elliott Wave count shows a Elliot Wave 5 high has been achieved.

David Fabian, Fabian Capital Management, writes in Seeking Alpha, that the iShares 20+ Yr Treasury Bond Fund TLT traded 2.36%, lower on Friday April 6, 2013, as the yield on the 10-Year Treasury Note, ^TNX, rose 7.42%, to close up at its 200day average of 1.75%.

The trade lower in Electric Utilities, XLU, suggests that chasing yield is over; look for all of these yield bearing equity and debt investments, seen in this Finviz Screener, PSP, UJB, KBWY, ROOF, DRW, AUSE, DBU, XLU, REM, IST, SEA, BRAF, FNIO, REZ, PGF, IYR, KBWD, DTN, TAO, FLOT, to trade lower on the exhaustion of the world central banks’ monetary authority to continue to stimulate global growth and trade and to prevent sovereign default in the Eurozone.

Scott Grannis writes Fund flows show investors still cautious. With data as of last week, ICI’s tally of equity fund flows shows no net inflows for the past two months, even as equity prices have hit new all-time highs. Bond funds, meanwhile, continue to enjoy strong inflows, even as bond yields remain very near all-time lows. Mutual fund flows thus reflect a market that is still dominated by caution.

Many should have been optimistic, and invested in a Global ZIRP, Risk On, ONN, currency carry trade, ICI, and Aggregate Credit, AGG, driven Crack Up Boom in equity investment in Nation Investment, EFA, specifically in Ireland, EIRL, the Philippines, EPHE, New Zealand, ENZL, and Thailand, THD, as well as sector investment in Homebuilding, ITB, Consumer Services, IYC, Biotechnology, IBB, Dynamic Media, PBS, and Global Financials, IXG, as well as credit investment in Junk Bonds, JNK, Ultra High Yield Bonds, UJB, Senior Bank Loans, BKLN, and Distressed Investments, FAGIX, which commenced in July 2012 on ECB OMT, and surged in November 2012 on BoJ Abenomics.

Over the last six months, Leveraged Buyouts, PSP, (yielding 3.7%), Premium Yield Equity REITS, KBWY, (yielding 4.1%), Small Cap Real Estate, ROOF, (yielding 4.1%), and Australian Dividends, AUSE, (yielding 4.1%) , were the the best paying dividend equity investments, as is seen in their combined ongoing Yahoo Finance Chart. Their seigniorage, that is their moneyness, came from Global ZIRP, as well as from the US Fed continuing to buy Mortgage Backed bonds, MBB, which has fallen parabolically lower in value, when World Stocks, VT, blasted higher on Friday May 3, 2013, on excitement that the ECB had lowered its interest rate.

As World Stocks, VT, Nation Investment, EFA, Small Cap Nation Investment, IFSM, traded higher, Aggregate Credit, AGG, and Government Bonds, GOVT, World Treasury Bonds, BWX, and all forms of credit traded lower except for Junk Bonds, JNK, Ultra High Yield Bonds, UJB, Junk Bonds, JNK, Senior Bank Loans, BKLN, and Distressed Investments, FAGIX. The latter trades like those investments, taken in by the US Fed under QE1, and which were exchanged for “money good” US Government Treasuries, GOVT, in order to stimulate the global economy after the 2008 financial collapse.

Liberalism featured a global currency carry trade, and aggregate credit, financed, investment scheme of trust in toxic of debt as related above, and Liberalism’s scheme of ever increasing moral hazard of securitization of US Government Bonds, GOVT, by the Too Big To Fail Banks, RWW, and securitization of mortgage backed bonds, MBB, by Mortgage REITS, REM, which continually invigorated risk-on trade in Nation Investment, EFA, and Small Cap Nation Investment, IFSM, whereby Ireland, EIRL, the Philippines, EPHE, New Zealand, ENZL, and Thailand, THD, were the investors favored countries of investment, as is seen in their combined Yahoo Finance Chart.

Homebuilding, ITB, Consumer Services, IYC, Biotechnology, IBB, Dynamic Media, PBS, and Global Financials, IXG, were the leading sector investments, as is seen in their combined Yahoo Finance Chart.

Now with the trade lower in Aggregate Credit, AGG, a see-saw destruction of wealth has commenced, where World Stocks, VT, and Aggregate Credit, AGG, will alternatively turn ever lower, on competitive currency deflation, which will be seen in Major World Currencies, DBV, and Emerging Market Currencies, CEW, trading lower in value, as all forms of fiat wealth, equity, credit, currencies, will join commodities, falling into the pit of financial abandon, as the dynamos of global growth, and corporate profitability wind down Crony Capitalism, European Socialism, Greek Socialism; and the dynamos of regional security, stability, and sustainability, wind up Regionalism.

The combined policies of the world central banks to pursue debt deflation has finally resulted in a steeping of the US 10 30 Sovereign Deb Yield Curve, STPP, and a rise in the US Ten Year Interest Rate,^TNX, thereby making “money good” investments, such as Electric Utility Stocks, XLU, bad.

The chasing of yield, that is the pursuit of yield, came on ever increasing moral hazard. Soon actual hazard will come of age, as investors derisk out of all forms of fiat wealth, that is out of Stocks, VT, Credit, AGG, Major World Currencies, and Emerging Market Currencies, CEW. This will stimulate an investment demand for physical possession of gold bullion and trading in gold bullion in Internet Vaults, such as Gold Is Money and Bullion Vault.

Of note, Malaysia, EWM, blasted terrifically higher, and Small Cap Pure Value Stocks, RZV, rallied to its previous high on the trade higher in HTZ, CAR, STAN, and URI. The rise in these is surprising in as much as the World Major Currencies, traded slightly lower. Gaming Stocks, that is Resorts and Casinos, BJK, rose strongly higher. Vice Stocks, such as those maintained in Fidelity Investments, VICEX, Mutual Fund, rose higher; this mutual fund has been one of the best performing mutual funds, and has outperformed the S&P 500 for the last two years.

In dispensation, that is in the administration plan of God for the fullness and completion of every age, era, epoch and time period, presented in Ephesians 1:10, Jesus Christ, the Son of God, is terminating the pursuit of yield, which created the very last upward burst in fiat wealth in Liberalism’s age of investment choice.

Authoritarianism’s age of diktat is commencing, as the wold is pivoting out of Peak National Sovereignty, Peak Seigniorage, that is peak moneyness, Peak Yield, Peak Credit, AGG, Peak Wealth, VT, Peak World Major Currencies, DBV, Peak Emerging Market Currencies, CEW, and Peak Prosperity. The global reflation trade that began in July 2012, with Mario Draghis’ OMT coming on line is over, through and done. Jesus Christ has completed the task given to him by the Father for producing Peak Everything in Liberalism’s age of investment choice.

At the hands of the Son of God, Inflationism is now turning to Destructionism.

Specifically with the dismissal of 15,500 Greek state workers, and the announcement of a likely termination of 30,000 Portugal state workers, Jesus Christ is terminating both Greek Socialism, which was the most extreme form of clientelism and anti competitive economics, as well as European Socialism, introducing the age of diktat. He is doing this via the release of the First Horseman of the Apocalypse, that is the rider on the white horse, who has a bow without any arrows, Revelation 6:1-2, to effect coup d etat, transferring the baton of sovereignty from nation states to regional nannycrats, such as the EU Finance Ministers, and regional bodies, such as the ECB.

Liberalism featured the Banker Regime founded on the Milton Friedman Free To Choose fiat money system, providing schemes which underwrote investment choice, such as free trade agreements, and the repeal of the Glass Steagall Act.

Authoritarianism features the Beast Regime of Revelation 13:1-4, founded on the regional governance, totalitarian collectivism, debt servitude, and austerity, and features the diktat money system, providing schemes which underwrite diktat, such as new taxes, bank bailins, capital controls, and labrinthian austerity measures.

Diktat Money was born out of the Cyprus Bank Deposit Bailin and is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits via bailins, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional leaders such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm, as well as sovereign regional sovereign bodies, such as the ECB, invoke mandates for regional security, stability, and sustainability.

2) … On Tuesday April 7, 2013, Transports, XTN, and Industrials, XLI, rose practically vertically higher. The Australian Dollar, FXA, traded lower for the second day forced Australia, FXA, and also Australia Dividends, AUSE, lower. The trade lower in the Australian Dollar, forced Major World Currencies, DBV, lower.

Economic Policy Journal relates The Obamacare nightmare will officially start October 1, 2013. Ezekiel Emanuel, a former health-care adviser to President Obama and brother of Chicago Mayor Rahm Emanuel, spills the beans in WSJ. In less than five months, on Oct. 1, the Affordable Care Act’s insurance exchanges will go live online. Millions of Americans will suddenly be able to log on to a website and choose their own heath-care coverage from a menu of subsidized options for prices and coverage levels. As the opening day gets closer, anxiety is increasing over how well these online exchanges will function. Seventeen states and the District of Columbia are operating their own exchanges, seven states are operating exchanges in partnership with the federal government, and the federal government is running exchanges for the remaining 26 states that opted not to create their own. All are rushing to ensure that their systems get up and running on time, and nobody is forecasting a glitch-free rollout, not even the president. Transforming the U.S. health-care system—which is larger than the economy of France—is one of the most daunting administrative tasks government has ever confronted. There will be bumps in the road; this is inevitable. Setting up the exchanges will pose a host of technological challenges, such as digitally linking an individual’s IRS information (which determines a subsidy level) to the insurance offerings in the individual’s home area and to employment data—while simultaneously factoring in Medicaid eligibility … more here

The National Bank of Greece, NBG, and Ireland’s IRE, European Financials, EUFN, led Europe, VGK to a new rally high. Greece, GREK, Italy, EWI, and Spain, EWP, rose strongly. Asia, EPP, rose near its previous rally high. The Too Big To Fail Banks, RWW, led US Shares, VTI, to a new rally high, and Emerging Market Financials, EMFN, led Emerging Markets, EEM, to a new high, on a new high in Emerging Market Currencies, CEW. Major World Currencies, DBV, traded slightly lower, falling a small amount under trend line support.

Small Cap Value Shares, RZV, rose to a new high.

It was the European Financials, EUFN, blasting 1.8% higher that led all of the yield bearing equities, higher. Notable the value shares International Small Cap Dividend, DLS, and Emerging Market Small Cap Dividend, DGS, rose strongly. The regulatory capture Pharmaceuticals, PJP, and the truly debt impaired Utilities, XLU, did not rise with other yield bearing stocks.

The world central banks’ monetary policies of Global ZIRP have so inflated equities, that unprecedented investment mania has blasted stocks higher. The traditional meaning of investment has been not only warped, but has been totally corrupted by what amounts to free money entering the stock markets, enabling the speculative leveraged investment community to blow unprecedented bubbles in most all stock sectors.

Nations that have no investment merit are the investor’s darlings; an example is Greece, GREK.

Banks are valued not because they have candidates for profitable lending returns, but because they are loaded to gills with debt that investors have been pursuing with the greatest of ambition; examples include NMR and NBG.

Stocks are not being pursued because they have investment merit, but simply because of their inherent credit dynamics, as well as the seigniorage, that is the moneyness, given to them by Ben Bernanke, Mario Draghi, and Haruhiko Kuroada.

These nephilim, giants of our times, have so warped wealth and so distorted wealth, that it is no longer reliable; fiat wealth has become truly that, fiat, having value simply by the mandate and decree of credit lords.

Jesus Christ said “As it was in the day’s of Noah, so it will be in days of the coming of the Son of Man.” In Noah’s time the nephilim, the offspring of the worldly god, were mighty men of renown. Men whose deeds were so beyond the normal deeds of men that legends arose marking that age of one of greatness, yet, they were destroyed in the global deluge. An inquiring mind asks, might the giants of world credit, be washed away in a soon coming awesome breakdown of excessive credit? Yes, that is what the bible reveals. Just as eight souls survived to regenerate mankind; eventually ten kings will rise to rule in ten regional zones.

The chart of the US Dollar, $USD, UUP, shows a 0.9% rise to close at 82.75.The chart of Major World Currencies, DBV, shows a rise to the lower edge of support, as well as to the apex of a massive consolidation triangle, portending a fall lower. And the chart of Emerging Market Currencies, CEW, shows a 0.6 trade lower from what is an evening star pattern, terminating its recent rally. Individual currencies trading lower included the Japanese Yen, FXY, -1.7%, the Swiss Franc, FXF, -1.4., the Euro, FXE, -1.0, the Australian Dollar, FXA, -0.9, the Swedish Krona, FXS, -0.8, the British Pound Sterling, FXB, -0.6, the Canadian Dollar, FXC, -0.5, the Indian Rupe, ICN, -0.3, and the Brazilian Real, BZF,- 0.3.

The chart of the US Dollar, $USD, UUP, shows a 0.9% rise to close at 83.17 as the chart of Major World Currencies, DBV, shows a continuing slight rise to stand just above the apex of a massive consolidation triangle, portending a fall lower. And the chart of Emerging Market Currencies, CEW, shows a parabolic 0.6% trade lower from a previous evening star pattern, terminating its recent rally.

On Friday, May 10, 2013, competitive currency devaluation entered its second day this week on the death of credit, as is seen in Aggregate Credit, AGG, trading parabolically lower. Distrust in the ability of debtors to pay back creditors has finally come of age, as investors rally World Stocks, VT, to a blow off market top. Bill Gross, manager of Pimco’s monster Pimco’s Total Return Fund ($292 billion under management) tweeted correctly today stating “The secular 30-yr bull market in bonds likely ended 4/29/2013”.

Individual currencies traded lower again today; these included the Swiss Franc, FXF, -1.0, the Indian Rupe, ICN, 1.0, the Japanese Yen, FXY, -0.9, the Brazilian REAl, BZF, -0.7, the Australian Dollar, FXA, -0.7, the Swedish Krona, FXS, -0.7, the British Pound Sterling, FXB, -0.6, the Euro, FXE, -0.4, and the Canadian Dollar, FXC, -0.3. Gold, GLD, is both a currency and a commodity, it traded 0.8% lower, which turned Commodities, DBC, 0.5%, lower.

Debt deflation, that is currency deflation, commenced the week ending May 10, 2013, most notably causing individual currencies the Australian Dollar, FXA, to trade lower, and driving up the interest rate on Global National Treasury Debt, BWX, which includes US Government Debt, GOVT, in particular the Interest Rate on the benchmark US Ten Year Note, ^TNX, which rose to 1.90%, which in turn induced the debt laden Electric Utilities, XLU, to turn lower; investors had been hotly pursuing these investments because of their high yield, but chasing of yield ended as bond vigilantes called interest rates higher across the board, which turned Aggregate Credit, AGG, lower.

The world central banks’ monetary policies of Global ZIRP, have finally turned “money good” investments, bad. A case in point is Australia’s Westpac Banking, WBK; in contrast, currency carry trade endowed, Lloyds Bank, LYG, rose strongly in a Global ZIRP grand finale finish. Failing of Global ZIRP, stimulated investors to derisk out of Nation Investment in Australia, EWA; in contrast Malaysia, EWM, rose strongly on Global ZIRP cool aid. And souring Global ZIRP, in particular the debt dynamics of Australia Dividends, AUSE, turned this investment lower, while investors pursued Pharmaceuticals, PJP, to its zenith. Another example of investors derisking on excessive credit policies, is the trade lower in Japanese Treasury Bonds, as seen in their inverse, JGBS, trading higher, (as Doug Noland reports that the 10-year government bond yield jumped 13 bps to the highest level since February), in contrast Japan, EWJ, and Japan Small Caps, JSC, rallied higher.

At the first of the year, on fears of global growth slowing and corporate profits falling, investors derisked out ot the Emerging Markets, EEM, in particular Peru, EPU, and its Copper Mining, COPX, Southern Peru Copper Corporation, SCCO, as is seen in their combined chart, only to be reinvigorated by Kuroda Abenomics in mid April.

Abenomics has greatly spurred investment in SNE, KUB, NMR, IX, IIJI, SMFG, MTU, ATE, NTT, as is seen in their combined chart.

Peru and Japan are polar opposites in Liberalism’s wildcat finance, a Doug Noland term, with rewards going to short sellers of the former, up until mid April 2013, and investors in the latter. Jesus Christ operating through Liberalism’s Schemes, such as leveraged buyouts, currency carry trade investment and moral hazard, has produced investment gains to those exercising wise discernment in investment choice.

As of the week ending May 10, 2010, Jesus Christ fully completed the dispensation, that is the economic and political plan of God, Ephesians 1:10, for Liberalism’s era of investment choice producing prosperity. And He is successfully introducing Authoritarianism’s age of diktat producing austerity, which will be characterized by wildcat governance, where sovereigns and seigniors, bite, rip and tear one another apart in the desperate attempt to be the top dog ruler and banker, who operate in Authoritarianism’s Schemes of new taxes, bank deposit bailins, capital controls, and labyrinthine austerity measures.

Barry Grey of WSWS writes The task is not to “occupy” Wall Street; it is to shut it down, redirect the vast resources that are squandered in the operations of this gigantic gambling casino to meeting social needs, and take the banks and corporations out of private hands so they can be run democratically for the benefit of society.

I respond, that Jesus Christ is busy chiseling out the tombstones for the Banker Regimes’ Asset Managers, such as BLK, WDR, EV, STT, WETF, AMG, IVZ, and is weaving the banners of sovereignty for the Beast Regime’s nannycrats such as Olli Rehn, Jeroen Dijsselbloem, and Michel Barnierm. And He will not finish His endeavors until all current forms of political and economic life are terminated and every man, woman, and child on planet earth is yoked into the Beast Regime of regional governance, totalitarian collectivism, and debt servitude as seen in Revelation 13:1-4.

Electric Utilities, XLU, closed the week sharply lower on a steepening 10 30 US Sovereign Debt Yield Curve, as is seen in the Steepener ETF, STPP, steepening and the Interest Rate on the US Ten Year Note, ^TNX, closing at 1.90%. And Mortgage REITS, REM, traded strongly lower, as Aggregate Credit, AGG, failed for the second time in two weeks, this time on falling individual currencies. Notable fallers included BWX, ZROZ, EDV, TLT, MBB, MUB, GOVT, PICB, BLV, LQD, EMB, UJB, and JNK. The Global Credit Bubble has finally burst.

And in as much as some 15,500 Greek state workers, and some 30,000 Portugal state workers are to be laid off at the behest of the EU Finance Ministers, peak democratic experience and peak nation state sovereignty has been achieved. Liberalism’s peak seigniorage, that is peak moneyness from the Milton Friedman, Free to Choose Banker Regime, has been achieved as well.

Authoritarianism’s Regionalism is replacing Liberalism’s Crony Capitalism, European Socialism, and Greek Socialism, and will be the basis for the Ten Toed Kingdom of Regional Governance, seen in Daniel’s 2:25-45, Statue of Empires, where ten toes consisting of a miry and non cohesive mixture of iron diktat and clay democracy form as ten zones of regional governance. This structure of sovereignty and seigniorage will eventually crumble, and out of it, the Sovereign, Revelation 13:5-10, and the Seignior, Revelation 13:11-18, will rise to establish a one world government, and a one world religion, based in Jerusalem, Daniel 9:25.

In CBS Video EU Leader: Federal Europe to become a Reality. Jose Manuel Barroso, the most powerful leader in the European Union, says Europe will become a united political federation within the next few years. The European Commission president is laying out plans for an “intensified political union” that matches the economic cooperation in the EU. That includes plans for an elected “president of Europe.” “This is about the economic and monetary union but for the EU as a whole,” The London Telegraph quoted Barroso as saying. “The commission will, therefore, set out its views and explicit ideas for treaty change in order for them to be debated before the European elections.”

6) … In commentary from around the web

Doug Noland reports weekly on the wealth of the sovereigns, that is of the world central banks; he relates Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $629bn y-o-y, or 6.0%, to a record $11.102 TN. Over two years, reserves were $1.282 TN higher, for 13% growth.

And he reports on discretionary wealth of the people reporting M2 (narrow) “money” supply jumped $33.6bn to a record $10.535 TN. “Narrow money” expanded 6.5% ($645bn) over the past year.

And he reports The U.S. dollar index jumped 1.2% to 83.14 (up 4.2% y-t-d). For the week on the upside, the Norwegian krone increased 0.2%. For the week on the downside, the Australian dollar declined 2.9%, the New Zealand dollar 2.7%, the Japanese yen 2.6%, the South African rand 2.3%, the Swiss franc 2.2%, the Swedish krona 1.4%, the British pound 1.4%, the Danish krone 1.0%, the euro 1.0%, the South Korean won 0.8%, the Brazilian real 0.6%, the Taiwanese dollar 0.4%, the Singapore dollar 0.4%, the Canadian dollar 0.2%, and the Mexican peso 0.1%.

Scott Grannis writes What’s good for Japan is good for everyone. As I mentioned last January, one of the biggest things happening on the margin is the decline of the Japanese yen. It has now fallen to 101 yen/$, a level not seen since late 2008. The big decline of the yen marks what will most likely prove to be the end of Japan’s deflation affliction, and it is causing a significant improvement in the economic fundamentals of the Japanese economy

I respond that rather than the being the end of Japan’s deflation affliction, the value of both its Treasury Debt, JGB and the value of its Stocks, NKY, EWY, JSC, DXJ, will be going into strong deflation as investors are derisking on Japan’s excessive credit policy. Japanese Treasury Bonds are trading lower, as seen in their inverse, JGBS, are trading higher, as Doug Noland of Prudent Bear reports the 10-year government bond yield jumped 13 bps to the highest level since February and as Tyler Durden of Zero Hedge reports JGB Futures halted limit down; which stands for now, in contrast with Japan Equity, EWJ, and Japan Small Cap Equity, JSC, rallying higher.

Austrian Economist Ludwig von Mises wrote In the eyes of cranks and demagogues, interest is a product of the sinister machinations of rugged exploiters. The age-old disapprobation of interest has been fully revived by modern interventionism. It clings to the dogma that it is one of the foremost duties of good government to lower the rate of interest as far as possible or to abolish it altogether. All present-day governments are fanatically committed to an easy money policy.

I comment, well, Déjà vu, Liberalism’s scheme of Quantitative Easing was pushed aggressively in Europe in August, 2012, and pushed aggressively in Japan in October 2012, with strong results showing in European Financials, EUFN, at those times, and then again, in mid April 2013.

Benton te writes Central bankers have been pushing for the same debt based consumption growth model even when most of the world has now been satiated with debt. Central bankers from most countries appear to have synchronized their actions. In short everyone seems as doing the same thing or singing the same tune. Central bank policies serially blow asset bubbles. Price distortions in the real economy from central bank policies and from other financial repression measures as well as other interventions reduce incentives for productive activities. On the other hand, central bank’s cheap money AND guarantees (explicit and implicit) on the financial markets encourage rampant speculations, thus driving up unsustainable bubbles. So money shifts to speculation on financial markets rather than on investments. Thus the parallel universe: booming financial markets amidst near stagnant economies. Yet bubbles from zero bound rates will reduce savings and capital accumulation. Such diminishing growth will impel for more easing. This means that central banks will keep pushing zero bound rates and asset buying programs to the limits.

I comment that the pursuit of Global ZIRP has produced all the fiat asset inflation that can be attained: the world stands at peak seigniorage, that is peak moneyness from the world central bankers interest rates cuts and other intervention initiatives.

Benton te continues, Central bankers have come to believe that a new order exists. The new paradigm: Sustained credit and money expansion under today’s modern central banking will have little effects on price inflation. So there are no limits for inflationism. Because of this policy making nirvana, they have even hailed as Superheroes and demigods by media.

I comment that today’s central bank leaders are modern day Nephelim, that is giants amongst us. Trust in their Liberal Schemes of Quantitative Easing has produced great gains for the speculative leveraged investment community, and has produced a fantastic moral risk enduced prosperity supporting a blossoming recreational consumer driven consumptive economy, seen in Consumer Discretionary Wealth, IYC, and Retail Wealth, XRT, soaring in value, and seen in a huge amount of disposable wealth existing in savings accounts as evidenced by the awesome rise in the chart of M2 Money.

Benton te adds Central banks don’t realize of the micro effects of their policies, particularly that each bursting of the bubble shrinks the real economy and makes them vulnerable to price inflation. The coming crisis will likely reveal more signs of this.

I comment that a number of nations are already evidencing price inflation because of the misguided policies of their central banks, these include Brazil, EWZ, China, YAO, and Argentina, ARG. And now India, INP, in an attempt to cut off price inflation, is attempting to restrict gold imports.

Benton te remarks So central bank policies will keep inflating on more asset bubbles that will become systemically bigger until the system cracks

I comment that the global government credit bubble, that is Aggregate Credit, AGG, burst this week, the week ending May 10, 2013, with ZROZ, EDV, TLT, MUB, MBB, GOVT, and BLV, LQD, and

A rising US Dollar, $USD, UUP, up this week near its late March high, and a Steepening 10 30 Yield Curve, $TNX:$TYX, beginning this month, that is May 2013, seen in the Steepner ETF, STPP, steepening, means that the monetary authority of the world central banks, has crossed the Rubicon of sound monetary policy, and is starting to make “money good” investments bad.

Investors deleveraged out of commodities, DBC, in particular, Gold, GLD, which is both a commodity, and a currency, as well as Oil, USO.

And at the end of the week, once again investors are derisking out of the Emerging Markets, EEM. Of note investors sold out of Korea, EWY, largely on fears of a possilbe war with North Korea. And investors sold out of New Zealand, ENZL, which as been a currency carry trade darling largely on the basis of the dynamics of debt held in its banks. Yield bearing investment trading lower this week included Australia Dividends, AUSE, Global Utilities, DBU, and Electric Utilities, XLU.

Benton te concludes Central banking bureaucracy have assumed political supremacy over the elected governments through the intensification of monetization of government debts. As Chicago University John Cochrane aptly notes: (italics original) Modern financial systems are fine. Modern political systems have abandoned rule of law in favor of a monarchic rule by discretion of appointed bureaucrats. That is incompatible with any financial system. Since actions of governments of crisis stricken nations have partly been shackled from too much debt, the next phase will not only be central bank easing but will soon include direct confiscation of savings (pensions and depositors).

The European Central Bank could “soon” start buying bad debts of Southern European countries in an attempt to end the fragmentation in the eurozone and boost funding to SMEs, as confirmed by the German ECB representative Jörg Asmussen.

“It’s part of the debate on lending to SMEs,” Asmussen said when asked about the measure, which was unveiled by the German newspaper Die Welt. The ECB has an “open mind” to do everything “within our mandate” to solve this problem, Asmussen explained in an appearance before the Economic Affairs Committee of the Parliament.

The goal, the German banker continued, is “revive the market asset-backed securities, particularly those backed by loans to SMEs, of course with strict supervision.” In any case, the ECB representative stressed that “liquidity is not what is preventing banks from lending” but “the lack of capital.”

For his part, Vice President of the Commission responsible for Economic Affairs, Olli Rehn, has said that in “many parts of southern Europe” live SMEs “financial trap”. “We are facing severe financial fragmentation in Europe, where similar types of companies must pay for credit interest rates significantly higher in southern Europe compared to the core countries,” said Rehn.

“It is very important that each European institution, within its mandate, work to overcome this funding and liquidity trap in southern Europe,” he insisted. “We have to complete the repair of the banking system as soon as possible, ensure its capitalization, build a banking union and resolve the liquidity trap,” stated the economic vice.

Asmussen seeks a complete banking union “as soon as possible” to break the “negative interaction” between banks and states and prevent recurrence of crises such as Cyprus.

“The Cypriot case has been a salutary reminder of the importance of establishing a banking union as soon as possible. Only then will we be able to break the negative interaction between states and their banking systems,” said the representative of the ECB during a hearing in the Economic Affairs Committee on Cypriot case.

The German banker also stressed that the EU must “urgently” a framework for resolution of financial institutions that include “a set of clear and known in advance” about how the losses will be shared among the different creditors, establishing a “preference for depositors”.

“The new framework should put depositors at the top of the hierarchy of creditors and ensure that the role of deposit insurance funds in the settlement is limited to guarantee to depositors” with less than 100,000 euros.

The ECB also wants a unique mechanism of resolution “with a strong central authority to take impartial decisions to minimize time and costs of the resolution.” This authority should have a resolution fund that has temporary public support and is “fiscally neutral”.

Scary Stuff! Talk of “temporary public support” ought to scare everyone in Germany to death. Heck, this kind of talk should scare the UK to death as well. It serves as a warning signal for the UK to exit the EU while it can.

Fiscally Neutral? Supposedly the proposal will have a “resolution fund” that is “fiscally neutral”. Hmm… Neutral to who? Taxpayers?

Banking union? Who does that benefit? Within Mandate? Asmussen says the ECB has an “open mind” to do everything “within our mandate” to solve this problem. Since when is it under ECB mandate to buy toxic debt of Southern European countries to stimulate SME lending?

Uncertainty Principle Yet Again. Seems to me banks lent too much money already to SMEs and are chocking on losses. Is it within ECB mandate to provide capital to failing institutions? I think not. Nonetheless, the Fed Uncertainty Principle is at play once again. Simply substitute ECB for Fed in the following corollary. Uncertainty Principle Corollary Number Four: The Fed simply does not care whether its actions are illegal or not. The Fed is operating under the principle that it’s easier to get forgiveness than permission. And forgiveness is just another means to the desired power grab it is seeking

I comment, moving beyond the Three Bailouts of Greece, and the Bailin of Cyprus, new Schemes of Authoritarianism’s Diktat Money System are being developed to further the Debt Union that came via LTRO 1, LTRO2, and OMT. The new Leaders’ Initiatives would develop both a credit union and a banking union, where the ECB, not the markets provide seigniorage, that is moneyness. This would be a transformation out of capitalism as investment risk would be terminated. It privatizes any profit and socializes the losses to all living in the Eurozone which are significant in amount, thus solidifying and expanding a debt union. The traditional concept of trust will be relegated to the dustbin of history; and a new trust, that being trust in regional sovereigns will be commanded for one’s observance.

In dispensationalism, that is in the political and economic plan of God for the completion of Liberalism and the introduction of Authoritarianism, Ephesians 1:10, Jesus Christ is developing Regionalism and is terminating Crony Capitlaism, European Socialism, and GreekCapitalism; the new framework, specifically one of diktat not treaty, is a scheme of regional integration.

This is the working of the First Horseman of the Apocalypse, Revelation 6:1-2, who is effecting a Eurozone Coup d etat, passing the baton of sovereignty from nation states to sovereign regional leaders and sovereign regional bodies. The integration of banks and states with the ECB would establish a defacto One Euro Govenment. Such a banking scheme places depositors’ funds at risk, and estabishes a regional political and monetary authority, with a monetary pope, and with monetary cardinals soon to follow. Surely nannycrats from banking, government, and industry would emerge to form councils of wise men to form statist public private partnerships to oversee regional factors of production and regional economic activity.

Germans cannot be Greeks, yet all will be one living in a zone of regional governance, totalitarian collectivism, debt servitude, capital controls and austerity measures. The periphery nations will be zombified dead hollow moons, revolving around planet Germany.

7) … Worship is the basis of virtue and economics is the basis of ethics.

Either one be elect or one be fiat.

The elect are individuals who worship God’s will and have experience and identity out of the divine nature.

The fiat are individuals who worship their own will, Colossians 2:23, and have experience and identity out of philosphy or religion.

The New Testatment presents God as a mysterious unity of three devine persons. God works through mysteries, that is through known unknowns to the glory and praise of His Name. Of course there be unknown unknows; these are the secret thing of God, Deuteronomy 29:29; but to the elect He gives wisdom and knowledge of his mysteries that one might feel after him and have concept of Him.

The presentation of the mystery of Christ comes via the apostles, that is God’s sent ones. The Apostle Paul communicates that Jesus Christ is God’s son and has appointed Him heir of all things. He being sovereign is the sole agent of the economy of God, Ephesians 1:10, and it is by His fateful working that one can exercise in virtue and ethics. or by His fateful destiny, live debased in carnality and in abject iniquity. Such have seared their conscience, and have lost all empathy, live without remorse, and be libertine or worse psychopaths.

Amongst the fiat, there be those known as Austrian Economists, who do live a life of discernable virtue. These believe themselves to be sovereign individuals, having economic agency working out their affairs and having ethics in human action, quoting Ludwig Von Mises, Human action is purposeful behavior. Or we may say: Action is will put into operation and transformed into an agency, is aiming at ends and goals, is the ego’s meaningful response to stimuli and to the conditions of its environment, is a person’s conscious adjustment to the state of the universe that determines his life. Such paraphrases may clarify the definition given and prevent possible misinterpretations. But the definition itself is adequate and does not need complement of commentary.

The Austrian Economists have a genuine and reliabe understanding of the principles of money, that is wealth, currrency, and credit, that is debt. These conservatives contrast sharply with Liberals such as Paul Krugman.

The elect have consciounness of Christ and endeavor to develop a good conscience. John McArthur of Grace To You writes in The Conscience Revisisted, Drugs, therapy, entertainment, they’re all used to silence a guilty conscience. But for the Christian, the conscience is the key to freedom.

A good conscience will deliver one out of temptation and establish one in heartfelt spriritual union wth Christ and will develop a keen understanding of His person. A good conscience will deter on from

the carnal experience of retribution

engaging in poneros self pleasing activities

manifesting in intrusive, preeminent, mischevious, condescending or mean and crazy behavior and speech.

Simply through indwelling carnal nature, that is sin nature, or through repeated disregard of conscience, one stumbles in sin, that is doubt.

The elect are called to live in godliness, 2 Peter 1:6, mainly the fruits of the spirit, and experience Christ as one’s life, Colossians 3:4, and one’s all inclusive life experience, Colossians 3:11. They keep the word of His endurance, and shrink not from His Name, and thereby live in His presence and authority. They live a live of biblical seperation. They practice the New Man in Christ, mortifying that is putting to death the carnal desires that come up through temptation, so as to prevent the pain and dislocation that comes from stumbling and falling in sin. And live a life of ethical regard; for example, they pursue peace with all men, defraud no one, and do not make merchandise out of others.

In dispensation, Ephesians 3:10, Jesus Christ is working the mystery of righteousness to breathe life into His elect, and is working the mystery of iniquity to breed psychopaths to destroy the unsuspecting, the gullible and the disbedient to His Will that one avoid these destructive agents.

I reside in the inner city, its the very pit of psychopathy, and I see daily in Promethius Predator manner and in Alien Predaor like manner, that Jesus Christ is developing pychopaths to rule over others in every way they can.

Psychopaths are people who do not have multiple personality disorders, yet are people who manifest in different persons; these chameleons present different persons depending upon the situtation.

Liberalism’s situational ethics and values clarification, have been the fertilizer that have enabled pscyhopaths to flourish.

Psychopaths are people who

have no real understaning of important concepts, or who twist, and pervert all understanding of critical ideas to suit their whimsical fantasies.

cannot be reasoned with.

have life satisfaction that comes from being preeminent or from being mean and crazy.

practice predatory speech and behavior intermittently, and come out most visciously when opportunity presents.

live for today, and have no regard for eternal things as they disregard the concept of a Judgement Day by God.

often appear witty, charming, a nice gal, or a good guy; its all pure “show”.

have social flare, that is they are intrusive, preminent, gossipy, complimentary, mishcevious, devious, loud, condescending or derogatory, as they feel an urge to suit their ambitions; they are fully adept at manifesting in all forms of iniquity.

8) … The United Church of Godhas new president

I am a John 3:16 Christian, and not of any denomination, and most definitely not a Sabbatarian.

My interest in bible prophecy started when I started listening and viewing the radio and television personality Garner Ted Armstrong. Wikipedia relates that in the fall of 1989, he travelled to Berlin to do on the spot radio broadcasts covering the fall of the Berlin Wall. This was coming full circle, as he had been in Berlin in 1961 as well. The CoG has long presented that a United States of Europe would one day become a reality.

God has appointed His Son as the heir of all things and has tasked him with the responsibility of bringing to full maturity the things of every time priod. In dispensation, that is in the house hold administration of the economy of God, Jesus Christ, Ephesians 1:10, has brought Liberalism to its very zenith of completion.

Peak Soveignty and Peak Seigniorage, has produced Peak Prosperty, that has come by ever increasing moral hazard and ever increasing risk to one’s ethics, via currency carrry trade investing and credit liquidity, based upon the monetary expansion of the world central banks’ fiat money system.

Jesus Christ has appointed Joshua Flecka as herald of a soon coming Eurozone Federal Government.

While Liberalism was the era of investment choice, Authoritarianism is the age of diktat. Just as investors today trust in the authority of the world central bankers such as Ben Bernanke, Mario Draghi, and Hiroki Kuroda, to provide credit. All people, everywhere with increasing frequency will be required to comply with the diktat of regional nannycrats in regional governance, debt servitude and labyrinthian austerity measures in the diktat money system.

2) … On Wednesday, May 1, 2013, European Labor Day, a major Illuminati Holiday, the sovereignty of the nation state of Greece utterly gave way as Christoph Dreier of WSWS reports More mass layoffs in Greece. The Greek parliament has voted to dismiss 15,500 public service workers and slash the minimum wage. Constitutional law, all historic law, and natural law has been superced by the word will and way of sovereign Eurozone regional leaders, that is by nannycrats, and by sovereign regional bodies such as the EU Finance Ministers and the ECB. And The Telegraph reaports Portugal to slash 30,000 public sector jobs and raise retirement age. Portugal’s prime minister has announced that the government plans to slash 30,000 public sector jobs as part of a sweeping package of spending cuts to satisfy international creditors

On the one hand, it is truly manipulative for the EU Finance Ministers to seize control of Greece and terminate Greek Socialism. Their endeavor is like setting off a neutron bomb which destroys all life, yet leaves the structurs standing. But then agin the Greeks, should never have been allowed into the Eurozone, for thier clientelism and tax avoiding ways; but they were invited in simply because, with interest rates falling, their treasury debt rose in value, presenting a fantasic invesment opportunity. Greek Socialism featured not only an anticompetive economic system, but a system described by the Economist Magazine as pork and patronage, that is one of clientelism. Needless to say, nannycrats are just now, beginning to literally wipe out Greek socialism.

The Greeks no longer live by Liberalism’s seigniorage of investment choice; they live by the a new seigniroage, the seigniorage of diktat as Chris Marsden of WSWS reports A Grand Coalition for austerity in Italy.

The First Horseman of the Apocalypse, presented in Revelation 6:1-2, as the Rider on the White Horse, who has a bow but now arrows, is effecting a Eurozone coup d’etat and is passing the baton of sovereignty from nation states to EU regional leaders and EU regional sovereign bodies such as the EU Finance Ministers and the ECB.

Jesus Christ is operating at the helm of the economy of God, Ephesians, 1:10, pivoting the world from Liberalism to Authoritarianism. That is He is operating in dispenstion, that is the economic and political administrative plan of God for producing peak experience in every age, epoch, era, and time period, drawing out the very fullness and completion of that experience, that He might be known as being sovereign over all thing, and in all things.

Chris Marsden of WSWS again reports A Grand Coalition for austerity in Italy. The formation of a Grand Coalition government in Italy shows the degree to which the global financial oligarchy dominates political life.

Greeks are no longer citizens of a nation state, rather they exists as serfs residing under regional govenance, totalitarian collectivism, debt servitude and austerity. These profligate ones, are the first to become subjects of the prophecied Beast Regime of Revelation 13:1-4, which is rising out of the Mediterranean Sea sovereignty and solvency crisis, to replace the Milton Friedman Free To Choose Banker Regime. And The Guardain reports the toll of economic decay being experienced. Greece suffers more misery as retails sales slump by nearly a third With a eurozone record of 27.5% of Greeks unemployed, the country’s retailers say the economy has gone into freefall .

Joschka Fischer is profiled as holding a professorship at the Woodrow Wilson School of International and Public Affairs at Princeton University, is a member of the Board of Trustees of the International Crisis Group, and of the Executive Board of the European Council on Foreign Relations.

David R Reagan writes that sovereignty will be sacrificed as a Federal Europe is formed. “German Foreign Minister Joschka Fischer repeated his call for a European government in July, 2000, and said the European single currency, the Euro, was “the first step to a federation.” He added that he wanted a “powerful president.”1 Fischer said his aim was “nothing less than a European parliament and a European government, which really do exercise legal and executive power,” to operate under his powerful president. More sinisterly, he welcomed the progress made in removing the “sovereign rights” of nations which he defined as control of currency and control of internal and external security. In summary, Fischer said, “Political union is the challenge for this generation.”2 … (1 and 2 Ibid, “German Foreign Minister floats idea of elected EU president,” The Financial Times, July 7, 2000. This article was a report on a speech by Joschka Fischer to the European Parliament’s constitutional affairs committee.)

Joschka Fischer writes in Project Syndicate Germany is once again at the center of the process of disintegration of trust. For the distressed southern European states, the German-backed mixture of austerity and structural reforms is proving fatal, because the decisive third and fourth components – debt relief and growth – are missing. It is only a matter of time before one of the large European crisis countries elects a political leadership that no longer accepts the austerity diktats. What does Germany want? A German Europe would never work, and the country’s political class lacks both the courage and the determination to pursue a European Germany. What needs to be done has long been clear. The price of the monetary union’s survival, and thus that of the European project, is more community: a banking union, fiscal union, and political union. Those who oppose this because they fear common accountability, transfers from rich to poor, and a loss of national sovereignty will have to accept Europe’s re-nationalization – and thus its exit from the world stage. No alternative – and certainly not the statusquo – will work.

I respond what will work and what is starting to work in the Eurozone is the diktat money system. The seigniorage, that is the moneyness, of the Milton Friedman Free To Choose Banker Regime, has been one of investment choice, supportied by the fiat money system. But now, with Libealism pivoting into Authoritarianism on May 1, 2013, with the failure of the political sovereignty of Greece, the world is beginning to be based upon the seigniorage of the Angela Merkel and Olli Rehn Beast Regime, which is one of diktat.

Diktat money is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional sovereign leaders such as Olli Rehn, and sovereign regional sovereign bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.

In dispensation, that is the economic and political administrative plan of God, Jesus Christ is terminating Liberalism and introducing Authoritarianism, where ever increasing moneyness will come from the mandates of regional leaders, such as the EU Finance Ministers and regional bodies such as the ECB, underwritten by Authoritarianism’s schemes such as regional framework agreements, which will waive national sovereignty and pool sovereignty regionally. The Nordic Latin Divide, that is the Eurozone North South Divide, will be bridged by such agreements, establishing a One Euro Government. While Germans, cannot be Greeks, they will be one, unified as residents of a region of “true European Government” as proposed by Angela Merkel, and reported by Spiegel and others. Clearly the Greek status is one of responsibility and accountability to sovereigns in Brusssels and Berlin; the future of the EU is a “ditkat union”.

3) … On Thursday, May 2, 2013, the S&P 500, $SPX SPY, rose 1.0% to a new high. Turkey, TUR, Japan Small Caps, JSC, the Phillippines, EPHE, rose to new highs. World Financials, IXG, rose to a new high as the European Financials, EUFN, and as the Too Big To Fail Banks, RWW, led Emerging Markets Financials, EMFN, the Regional Banks, KRE, and Far East Financials, FEFN, higher on the day.

Liberalism has created equity, credit and currency markets which have become utterly dependent upon government support. Increasing wealth, that is increasing money in the form of World Stocks, VT, and Nation Investment, EFA, has come through not only the Quantitative Easing policies of the US Federal Reserve, but also through the zero interest rate policies of the other leading central banks, such as the Bank of Japan, the ECB, the Australian Central Bank, and the New Zealand Central Bank as well, which has resulted in Global ZIRP, leveraging up investment results through carry trade investing, ICI, and the issuance of Junk Bonds, JNK, and all types of credit, AGG.

Benton te writes More poker bluffs. The removal or even a reduction of such stimulus essentially would “pull the rug from under” the inflationary boom and undermine the current government debt financing mechanics that would stir such massive market and economic disorder and volatility. This would raise the spectre of the “deflation”, a market phenomenon which incumbent authorities have a rabid phobia on, as well as, raise the risks of a default.

Simon Black of the Sovereign Man eloquently enunciates why US Federal Reserve has been TRAPPED by their own actions on financing the US government or the monetization of US treasuries.

Now, bear in mind that US debt already exceeds 100% of GDP.

Even using the US government’s own ridiculous budget projections (which assume 3.5% REAL GDP growth) Uncle Sam will still accumulate over $5 trillion in debt over the next decade.

But here’s the thing– the current $16.75 trillion of US debt has an average maturity of just 65 months. This means that the US government will be on the hook to repay a huge chunk of its debt within the next 5 1/2 years. So in addition to issuing $5 trillion (optimistically) in new debt, they’ll also have to re-issue trillions more in existing debt.

Someone is going to have to mop up all that debt. The question is… who? The Chinese are actually REDUCING their Treasury exposure as a percentage of total US debt (see chart). This is consistent with their objective to strengthen the renminbi. The story is the same with Japan at the moment, whose nominal US debt holdings have actually been decreasing. The US Social Security trust fund is also a major holder of US debt. Yet, according to the Washington Post, roughly 10,000 people EACH DAY become eligible to receive Social Security pension benefits. Given the increased outflows and high level of US unemployment (fewer people paying into the system), it’s doubtful that the Social Security trust fund will have sufficient cash to bail out the Federal government.

This leaves the US Federal Reserve as the lone player to mop up all this debt. There simply are no other options; the US government will default in all likelihood, unless the Fed continues debauching the currency to buy Treasuries. Fed officials and their apologists will continue with their blandishments of steroid withdrawals but real political economic conditions suggests that all these represent as mere bluffs.

Ambrose Evans Pritchard writes German bond yields hit record low after ECB rate cut falls short. The European Central Bank cut interest rates a quarter point to a record low of 0.5pc. Mr Draghi said the ECB is “technically ready” to cut the deposit rate below zero, an unprecedented step. This would impose a fee on banks for parking excess cash at the ECB, forcing them to lend. “We will look at this with an open mind,” he said. Analysts were divided over the significance of the move. Michael Krautzberger from BlackRock said the shift in thinking shows that the ECB has finally understood “the seriousness of the situation”. Monument’s Marc Ostwald said it was an admission of defeat. “It is the bottom of the barrel. What this really shows is that Draghi is scrabbling around trying to find anything. The problem is that the ECB is not a full central bank and has manacles stopping it doing anything,” he said.

The ECB said it is studying options to help small business in the Club Med bloc, where credit stress is comparable with levels seen in the Lehman crisis of 2008-2009. Jacques Cailloux from Nomura said large parts of EMU economy need “designated credit-easing” along the lines of Britain’s Funding for Lending. “The credit transmission channel is broken,” he said. The ECB’s reluctance to stop the “nominal” GDP growth grinding ever lower spells trouble for the debt trajectories of the Club Med states. The OECD warned in a report on Thursday that Italy’s public debt would rise to 131pc of GDP this year and 134pc next year, levels that enter uncharted waters for a major country without a sovereign central bank. The recession itself is undermining debt dynamics.

Central bankers have been revealed as having no qualms using the economy as guinea pigs for their grand designs.

And for whose benefit? Mr. Draghi on the direction of ECB policies: I would use the word frustrated, yes. We view improvements in financial markets. We think financial markets are the only and the necessary channel for the transmission of monetary policy. You don’t go around with helicopter money, throwing money. In Europe, you go through banks. You don’t have capital markets as you have in the U.S. We have to go via the banking system. That is why in my press conference I try to give you a very detailed reading of different indicators because it shows how closely we are trying to examine and analyze reality to see whether these impulses that we’ve been transmitting to the economy get translated into better welfare, lower unemployment, better economic activity.

So there you have it folks, no helicopter money, ECB’s policies will mainly be directed at the rescues of the crony banking system.

Thus the consideration of negative deposit rates or of the charging financial institutions for the money they deposited with the central bank which once again will penalize savers.

As the great Nobel laureate Austrian economist Friedrich von Hayek warned of Fatal Conceit by political authorities. The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. To the naive mind that can conceive of order only as the product of deliberate arrangement, it may seem absurd that in complex conditions order, and adaptation to the unknown, can be achieved more effectively by decentralizing decisions and that a division of authority will actually extend the possibility of overall order. Yet that decentralization actually leads to more information being taken into account.

Doug Noland writes Stock prices surge to record highs, while Credit market risk premiums collapse to multiyear lows. “We’re now well into the fifth year of unprecedented monetary and fiscal stimulus – with, incredibly, no end in sight! Predictably, economic results have been disappointing. Also, and just as predictable, the most outspoken proponents of aggressive “Keynesian” measures are these days claiming the limited success is due to stimulus not being administered in sufficiently powerful doses. This is regrettably consistent with the history of monetary inflations. They corrupt money, minds, markets and economies.”

I comment that Mr. Noland has written for the last five years warning that a “global government finance bubble”, also known now as Global ZIRP, has stimulated a “global leveraged speculating community.” Mr. Noland relates “Mature bubbles require ongoing leveraging and risk-embracement – or else. Dr. Bernanke spent much of his academic career building a thesis that massive monetary inflation would eliminate much of the traditional downside of bursting bubbles. What most today refer to as “deflation” I call the inevitable consequence of inflationary bubbles.”

Mr Noland continues, “As it has been throughout history, monetary inflation was viewed as the readily available expedient. The massive shot of federal debt and Fed liquidity supported home prices, inflated stock and bond prices and incentivized financial leveraging. Importantly, monetary and fiscal policy inflated aggregate household incomes, in the process ensuring a resurgent consumer, inflated corporate cash flows and earnings. In short, resuscitating the Credit Bubble and asset inflation was the least painful path to sustaining the Bubble Economy structure and avoiding protracted economic restructuring.”

“We’re now witnessing some of the downside of resuscitating Credit and asset Bubbles. First, an enormous infrastructure evolved over the past two decades that profited from asset inflation. In my nomenclature, the asset markets enjoy a much more robust “inflationary bias” than maladjusted real economies. As we’ve seen, massive stimulus will generate perhaps a couple percent of U.S. GDP growth while spurring stock and bond prices to all-time record highs.”

“The Fed dug itself a deeper hole this week when it opened up the possibility of actually increasing its $85bn monthly “money” printing.:”

“Dr. Krugman and others argue that the Fed is not doing enough, and point to Europe as evidence of the fallacy of so-called “austerity.” When I look at Europe I see the dire consequences of Credit excess and asset Bubbles on full display. In particular, Spain is locked in depression after housing and mortgage finance Bubbles so badly distorted the Spanish real economy. For too long, easy “money” and buoyant asset markets masked deep structural issues in Greece, Portugal, Spain, Italy, France and throughout the Eurozone.”

“The Fed is now dealing with historic – and, I believe, precarious – securities market Bubbles. And they’re Bubbles that will demand unending QE – or else risk a very problematic Bubble deflation. This is a dysfunctional Bubble that likes good economic news but loves weak data that ensures more monetary inflation for longer. And the greater the Great Divergence – the Greater the Dysfunction – the more the speculator community can leverage and speculate, confident that central banks are trapped by highly speculative markets, weak economies and acute fragilities.”

“the Fed is now dealing with historic – and, I believe, precarious – securities market Bubbles. And they’re Bubbles that will demand unending QE – or else risk a very problematic Bubble deflation. This is a dysfunctional Bubble that likes good economic news but loves weak data that ensures more monetary inflation for longer. And the greater the Great Divergence – the Greater the Dysfunction – the more the speculator community can leverage and speculate, confident that central banks are trapped by highly speculative markets, weak economies and acute fragilities.”

Investors celebrated the ECB’s lowering of its lending rate by buying risk assets and consumer discretionary investments of all types; sectors rising strongly on the day included

The very end of the completion of Liberalism was also marked by a pursuit of yield. Miller’s Money writes Reaching for yield. Investors have hotly chased yield bearing credit such a Ultra High Yield Credit Investments, UJB, and Junk Bonds, JNK. as well as yield bearing equity investments, such as the ones listed below, as Global ZIRP, drove Interst Rates lower globally, and investment value of yield bearing investments higher; these included the following

The chart of the S&P 500, $SPX, SPY, shows a trade 1.1% higher to a new high to close at $1,615; and SPHB, shows a trade 2.4% higher, near its recent high.

The style gainer of the day was Small Cap Pure Value, RZV, up 2.8; Small Cap Pure Gorwth, RZG, 2.5

Commodities, DBC, rose 1.2%, Oil, USO, 1.6%, Base Metals, DBB, 4.3%.

Doug Noland reports weekly, the wealth of the sovereigns, that is the wealth of the world central banks: , Global central bank “international reserve assets” (excluding gold) – as tallied by Bloomberg – were up $637bn y-o-y, or 6.1%, to $11.093 TN. Over two years, reserves were $1.315 TN higher, for 13% growth. And he also reports weekly the discretionary wealth of the people: M2 (narrow) “money” supply dropped $49.6bn to $10.501 TN. “Narrow money” expanded 6.8% ($667bn) over the past year.

Major World Currencies, DBV, traded higher; Emerging Market Currencies, CEW, traded to a new high. The Euro, FXE, traded higher, after yesterday’s strong trade lower, to close at 129.96.The US Dollar, $USD, UUP, 0.1%; traded lower to strong support at 82.15 The chart of the US Dollar, $USD, UUP for the week closed down 0.5% at 82.15.

The 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, steepened strongly, as is seen in the chart of the Steepner, ETF, STPP, steepening 2.4%. The Interest Rate on the US Ten Year Note, ^TNX, blasted higher to close at 1.75%. Aggregate Credit, AGG, fell strongly loweer, trading 0.40% lower; Junk bond, JNK, traded 0.04 higher, to a new high.

The euro fell for the first time in five days against the dollar after European Central Bank President Mario Draghi said policy makers may take the unprecedented step of charging banks to hold excess reserves.

“The euro was quite upbeat until Draghi made his comment that the ECB would be able to cope with any consequences of negative deposit rates,” said Daragh Maher, a currency strategist at HSBC Holdings Plc in London. “Previously, the language of the ECB on this front has characterized it as uncharted waters. Today, it seems the ECB is more open to the idea. The euro was clearly spooked by the mere concept of negative deposit rates in the euro zone.”

For an analysis of what this means, with a tip of the hat to Steen Jakobsen at Saxo Bank for the link, let’s flashback to a decision to cut the deposit rate to zero in July of 2012.

A positive deposit rate was the last thing anchoring money market rates to zero — or vague profitability. This is because banks could arbitrage the difference between the rates they received at the ECB and the rates money market funds were able to invest at.

By cutting the deposit rate, the ECB is killing this arbitrage. There will not be any profit associated with taking money from non-banks and parking it at the ECB for a small profit. Non-banks won’t even be able to get zero.

This will leave real-rates exposed to further deterioration. The ECB, of course, is hoping that non-banks will choose to channel that money into risky assets instead.

Death of banking.

FT Alphaville makes the case Negative rates as a precursor to the death of banking. What we believe is that rather than stimulating the lending market — and the economy along with it — such a rate policy could have a disastrous impact on collateral markets and money market funds, not to mention the net interest income of lending institutions. All of which could unleash a protracted deflationary spiral.

The move could also presage the death of banks and lending institutions completely.

FT Alphaville cites Morgan Stanley Research as follows: Our rates team expects short end German yields to follow financing rates into negative territory and some investors to extend along duration and credit curves to achieve positive yields to maturity.

But we do not think negative ECB deposit rates would drive any increase in cross-border interbank lending. Rather, we see a risk of greater Balkanisation of European banking markets from funding pressures.

Today, a fall in rates would hit NII and reduce banks confidence in their earnings build and capital plan – making them wish to delever more not less, although time should heal. Market liquidity is likely to fall; Bank and insurers earnings under further pressure.

In Japan, JGB trading volumes fell by 2/3 over the coming 12 years as ZIRP was adopted, particularly at the short end – one reason why the Japan Central Bank does not want front end rates to be negative. Negative rates would likely be a negative for earnings and could thus impact solvency of banks and insurers.

The greatest risk our rates colleagues see would be for negative rates 2-3 years down the curve, in which case banks would need to re-price credit further.

Morgan Stanley European Insurance analyst Jon Hocking writes: “Earnings and solvency margins for European insurers are already under severe pressure from very low long-term bond yields.”

Deposit rate of zero did not work

It’s clear that cutting the deposit rate to zero did not work. So why will cutting them to less than zero work? A negative deposit rate will not stimulate lending because it does not fix any structural problems, it does not fix any liquidity issues, and it makes solvency problems worse by turning guaranteed arbitrage gains into guaranteed losses on excess reserves.

The destruction of Credit, has commenced as the Steepner ETF, STPP, steepned 2.0% for the week, evidencing a rising of credit risk, seen in the 10 30 US Sovereing Debt Yield Curve, $TNX:$TYX steepening, and can be followed by the trade lower in credit investments seen in this Finviz Screener, and can be followed by the trade lower in yield bearing equity investments in this Finviz Screener.

The Interest Rate on the US Ten Year Note, ^TNX traded higher to 1.75, turning the 10 Year US Government Bonds, TLT, 2.0% lower, with Government Bonds, GOVT, trading 0.3% lower.

The ratio of World Stock, VT, relative to Commodites, DBC, VT:DBC, shows a rise higher to an unprecedented high, reflecting the inflation of stock value that has come about as a result of the world central banks’ policies of monetary expansion and credit liquidity. While investors have deleverged out of Commodities, DBC, on fears of diminishing global growth and profitable corporation returns, Global ZIRP, established through monetary expansion of the US Fed, the ECB, and the Bank of Japan, has stimulated invetment in an unprecdented way, to the point of producing “warped money”, that is money which is so torqued and distorted, that it is unreliable nd untrustworthy for providing capability for economic activity. Money, under pressure, from the world central banks, finally is starting to come back into alignment with underlying economic reality, specifically a reality that underlying Eurozone economic conditions are faltering badly as Andre Damon and Stefan Steinber of WSWS report Euro zone unemployment hits record high for 23rd consecutive month. Unemployment in the euro zone hit another record in March, with no end in sight to the economic and social catastrophe gripping Europe.

The twin levers of producing wealth under Liberalism, these being first, the securitization and financialization of both junk bonds, JNK, and credit, AGG, and second, currency carry trade investing, in particular a strong Euro Yen Currency Carry Trade, EUR/JPY, FXE:FXY, have moved wealth under Liberalism to the extreme. The excesses of Liberalism have come of age, producing Peak Liberalism.

Liberalisms’s initiatives of LB Johnson’s Great Society, Milton Friedman’s Free To Choose Economics, and Ted Kennedy’s Immigration Initiatives, which have been based upon ever increasing moral hazard and ethical risk, have in excess, devloped Liberalism’s Bubble Economy to the max. The global Credit Bubble, that is Trust Bubble, has swelled, and with that Wealth, VT, has risen to a new al time high. Peak Wealth has arrived.

The wealth that the world central banks has created is most definitely a warped wealth, that is a wealth that is distorted from anything genuine or reliable, and which reflects

nation investment that is not based upon the inherent capabilities of a nation such as natural resources, but rather, monetary policies of the world central banks producing Global ZIRP Nation investment in ARGT, EUFN, EIRL, EPHE, ENZL, EWA, EWJ, JSC, DXJ, IWM, IDXJ, THD, is totally distorted.

Furthermore, the monetary polices of the Fed, the ECB and the BoJ, have turned the very definition of wealth on its head, by making liability, that is debt, wealth. Thus wealth has become an oxymoron, a form of doublthink. The rise in global financials, IXG, on Globl ZIRP stimulus, represents financial alchemy, and thus Ben Bernanke, Mario Draghi, Hiroki Kuroda, are finacial alchemists who have made global financials, IXG, golden apples which will soon be apples of discord.

I wonder if Milton Friedman in proposing the Free To Choose Floating Currency Regime, could have wondered that debt and currencies would or could bubble up nation investment, EFA, and Small Cap Nation Investment, IFSM, to such gargantian levels, where wealth has become so torqued by the world central banks’ monetary policies, that is not only groestque, but is untrustworthy and unreliable, having no real value. Today’s wealth, VT, is so distorted that it cannot be and will not be maintained.

Credit liquidity has made equity investing, VT, and nation investment, EFA, and small cap nation investment, truly speculative, far more speculative than that which existed before the 1929 to 1932 collapse, and it is stunning to thingk that this wealth has come through ever strongly increasing moral hazard.

Just as there has been a flood of world central bank liquidity, theres is a flood of people, obtaining Social Security Disability, SSD, housing assistance, whether it be in public housing or with section 8 vouchers, as well as food stamps, all on an ever increasing demand for social justice. This tidal swell of receipients of SSD, is one which is supported by the Social Security Trust Fund, that is IOUs issued by the US Federal Government. I have to ask what about ethical justice, where one should be accountable for providing for one’s self even though one has a mental or physical disability; would it not make life more real, that is mor genuine for everyone. Social justice has trumped the opportunity for those with wealth to practice ethical giving. Just as wealth has expanded to become a warped thing, so social justice has become a fraudalent thing, where vast numbers of people who could be working, or could be relying on private charity, are not doing so, and thus avoiding a way where there would be appropriate controls and reviews with accountability for sane and responsible living.

I reside in the downtown area, in a SRO apartment, and I see and heard daily the libertine experience, as well as the psychopathic experience of those living on SSD, and assure you that the general rule is that once one receives SSD, virtue and ethics are quickly washed away by the desire for for both carnal and iniquity living, where men act out mean and crazy, as well as confrontational or preeminently, and women persue gossip and busy body opportunities. Under liberalism, promotion of social justice has produced a living experience which is far distant from virtuous and ethial living and reponsible living.

Jusus Christ has produced Liberalism’s Peak Soveriegnty, Peak Seigniorage, and Peak Prosperity,and He has also produced Peak Dependency and Clientelism.

In juxtaposition, the failure of the world central banks’ monetary authority to stimulate global growth and trade, corporate profitability, as well as to prevent sovereign default in the Eurozone, looms large.

The Apostle Paul communicates a number of important truths in his letter to the Ephesians, primary amongst these is the idea in Ephesians 3:10, that God has given administrative oversight of all things political and economic to His Son Jesus Christ, who operates in these for the fullfillment of every age, epoch, time period, and era, assuring its completion much like in the way a ship’s catptain assures the completion of the manifest before setting sail on a voyage. This administrative oversight is termed dispensation.

In dispensation, Jesus Christ is winding down Liberalism which was the paradigm that supported crony capitalism, European socialism, and Greek socialism, terminating the age of fiat asset inflation in two very big ways, first via the dismissal of 15,000 Greek state workers, and secondly via topping out World Stocks, VT, Credit, AGG, Curenices, DBV, CEW, and Commodities, DBC, on May 3, 2013.

Insolvent sovereigns, and their insolvent banks cannot provide governance or seigniorage, that is moneyness. The age of fiat asset deflation is coming out of the PIGS nation state sovereign and banking system crisis, where regionalism with its statist regional economic and political governance is already enforcing debt service, and austerity.

Having completed Liberaism’s properity on May 3 2013, Jesus Christ is putting Liberalism’s thought leaders out to pasture, as they successfully completed the full expansion of wealth, that is money, VT, credit, AGG, and currencies, DBV, CEW. Through ever increasing moral hazard, these labored in Liberalism’s schemes, to provide the very zenith of credit based prosperity; these schemes included:

the creation of the Creature from Jeckyl Island, that is the US Federal Reserve,

the creation of the nation state of Israel,

the creation of the Euro as a currency union,

the repeal of the Glass Steagall Act,

the development and widspread use of LBOs as an investment vehicle,

ever increasing clientelism through immigration and through social security disability,

financial system recovery through Quantitative Easing which has produced a non-productive entertainment, recreational and financial services based economy,

financialization of US Treasury Bonds via POMO as a means not only of providing fiscal resources for the US, but also as a means of distributing credit liquidity,

securitization of mortgage backed bonds, MBB, through Mortgage REITS, REM, such as AGNC, whose investment value has soared as investors have pursued yield under Global ZIRP,

liberalization of global trade through Free Trade Agreements.

Liberalism’s though leaders have included

LB Johnson, father, that is starter, of Clientelism and Federal Government Dependency,

Milton Friedman, father of the Free To Choose Floating Currency and Banker Regime,

Phil Gramm, father of the repeal of the Glass Steagall Act which provided for deregulation of the financial services industry.

Now, much like John the Baptist, served as the herald for the coming of Christ, Joschka Fischer, is turuning the peoples’ ears to the call of Authoritarianism’s thought leaders; these include,

Olli Rehn

Jeroen Dijsselbloem,

Michel Barnierm, The Business Recorder reports EU’s Barnier urges France to economic reforms. European Union Internal Market Commissioner Michel Barnier, the EU’s top financial regulator, called on the French government to pursue its planned reforms despite the Commission allowing two more years to meet its budget deficit target. Olli Rehn, the European monetary affairs commissioner, said on Friday France badly needed to unlock its growth potential and create jobs, adding Spain, Italy and the Netherlands as well as France – four of the euro zone’s five largest economies – would remain in recession this year. “It’s a moment of truth for the government which needs to have the political courage to carry out those reforms which will sometimes not be understood, and require effort,” he told French radio Europe 1 in an interview.

Through three Greek Bailouts and the Cypurs Bank Deposit Bailin, these nannycrats have replaced sovereign nation states as the Eurozone’s sovereign ruling authority. Their word, will and way, caries the power of law, trumping constitutional law, and even natural law held dear by Libertarians. The traditional concept of the rule of law does not apply under Authoritarianism. The rule of law, has gone down the memory hole.

Authoritarianism’s thought leaders are developing Authoritarianism’s schemes of diktat which include

New taxes,

Bank deposit bailins,

Capital controls,

Labrinthian austerity measures.

all of which are designed to develop a statist panopticon for regional security, stability and sustainability.

All people have values. Values are defined as the foundation, building blocks and framework for one’s life; they define one as bing elect having values and ethics, or fiat having carnality and iniquity; these are grouped into seven categories, as people have

committment to work and experience its rewards or are involved in clientelism and dependency

activities

affiliations

asssociations

mode of traansportation, a Lexus, or the bus, or a bicycle, or walking

plans

public way or a private way

6) … Ones values will determine if one lives in virtue and ethics or if one lives in carnality and iniquity.

Virtue manifests as praiseworth speech and behavios. Ethics is the practice of a peaceful, honest and transparent way with others; these desire liberty and promote freedom and a prosperity that does not come from moral hazard, but rather a prosperity that comes from meritorous use of personal property, insight or skill.

Carnality is the manifestation of antipathy, sensual indulgence, or abuse of another, as there be those have no desire for heartfelt spiritual experience in a higher way; such be libertine.

Iniquity is the practice of preminence or intrusiveness or confronation with others; as there be those whose life’s satisfaction comes from being a busybody or interventionist in the lives of others. Remember it was Diotrephes, who loves to have the preeminence, as John relates in 3 John 1:9.

The Apostle Paul was stone, beaten, and kicked out of many towns for continually preaching that either one be elect, that is the chosen of God, or one be fiat, having mandate out of philosophy, religion, or regional governance.

The elect be those having the like precious faith of Jesus Christ, trust in the promises of God, experience the divine nature, practice the seven additives of faith, and in so doing make their calling and election sure, lessen the chance of stumbling, and have broad entrance into the kingdom of God.

The fiat be those who have no faith in God, at least no faith in Christ, experience power from their convicions, and develop honor in their philosophy or their religion or develop standing in regional governance.

The elect, rely on sound, that is reasoned, New Testament doctrine. practice God’s will, adore God’s authority, and have experience in the person of Jesus Christ.

The fiat, rely on idelogy, practice will worship, that is the worship of one’s own will, venerate worldly authority or natural law, and have experience out of the beliefs of philosphy, the tenenets of religion, the delights of human nature, or the rule of diktat.

The elect have had some sort of transcendental experience that takes them out of normal experience and translates them into grace and truth. Usually it is the Morpheus Proposal, whereby God, presents the Red Pill or the Blue Pill for ones life’s direction. It was the Aposle John, who had the good fortune like all of the twelve apostle of being called of God, and it was Peter, James, and John, who were the Lord’s three most intimate and it is from these we have revelation as to what constitutes, resourceful living as well as the present truth, which contrasts with the past truth which is that of the nation of Israel, the law and the prophets.

The life outcome for the elect and the fiat ar entirely different; they are polar opposites

The elect enjoy heartfelt spritual satisfaction and joy in intellectual knowldeg of God, and have the objective of making their calling and election sure, that is a genuine thing, avoid stumbling, having a broad entrance into the kingdom of God, and becoming the child of God.

The fiat are established, that is bult up in the belief system of their philosophy or religion, and become its object; for example, those who practice Libertarianism become Libertarians, those who practice Muslimism become Islamists, those who practice Rooman Catholicism become Roman Catholics, those who practice Libertarianism become libertine, and those who practice psychopathy become psychopaths.

Values are comprised of

1) … The experience of discipline of work or the experience of dependency and clientelism

2) … One activities

Volunteer somewhere

Participate in study groups

Have a music or audio time where one listens to music or audio presentations

Has a quiet time for reading and reflection, planning and role playing

3) .. One’s party and club affiliation

Attends political party meetings

Goes to charity meetings, or attends a religious, or civic or social club

4) … Experiences with one’s associates, that is people who one spends time with or experienses that one has with friends.

5) … One’s mode of transportation, ie whether one drives a Lexus, or uses a skateboard

6) … Ones’ plans

Health Plan

Fitness Plan

Budget Plan

Vacation Plan

Education Plan

Reading or Audio Plan

7) … One’s public way and one’s private way. For example, Tiger Woods, when not out attending Gentlemens Clubs, has a very private way.

Those located in the person of Christ, have a very private way, communicate this to others, and live a life of biblical seperation; which goes a long ways, so as to speak, to avoiding conflict as well as to resolving conflict; whereas the psychopaths continually interject themselves into the lives of others, or are busybodies, are looking for gossipy opportunities, or go about being preminent, mean and crazy or confrontational; they are unreasonable, have no conscience, it got burned away by trespassing the rubicon of morality long ago, serve only for themselves, live for today, and have no remorse ever.

Those located in Christ are well advised by the admonition of the Oracle in the movie the Matrix who said, “Know thyself”, yes “balls to bone know thyself”, she said. Those located in Christ should consider developing and using a psychopaathic radar on a daily basis, where one knows and looks for the characteristic speech and behavior of psychopaths. Thus one marks and avoids those who walk disorderly; and in fact actively turns away from any contact or approach by psychopaths. God has established a “no contact order” for Christians; they are to have no contact with psychopaths at any time and for any reason.

Liberalism was the era of investment choice as well as an era of values clarification, where one was free to choose, and 1) be reserved, 2) be libertine, or 3) be psychopathic. Those who valued freedom, were reserved; those who valued licentiousness were libertine, and those who valued ruling over others were psychopathic; it was a free for all, in every way. Profits were privatized and losses were socialized. Society became so great as to grant social security disability to whoever complained of any mental illness or practically any physical illness. The Federal Department of Health and Human Services, DSHS, set up a free land, where many came to live free, doing as they pleased on social security disability payments of $700 a month, food stamps of $200 a month, and Public Housing or Section 8 Housing valued at $800 a month, as well as welfare benefits or foster care benefits for their offspring; that’s a total of $1,700 a month simply by going to see a shrink and getting a disability letter to live a life of clientelism and dependency, without any checkup ever to see if one is abusing one’s neighbor or living drunk.

Many who appear nice, or who appear to be a ladies man, or come across as being whitty, charming or beautiful, are often wolves in sheeps clothing, waiting to emotionally, physically, sexually or financially, use another to satisfy their ego and need to be preminent or rude, crude or manipulative or mischievious. Such have lost all consicence, or better said burned their conscience, to the point where it no longer exists. These have knowingly crossed the rubicon of morality, and pursued iniquity, simpy because it is carnally satisfying; such are continually eating of the tree of knowldege of good and evil, tasting different fruits, even consuming rotten things, simply for the pleasure of doing so. They are kick ass people, that is, those take names and kick ass; and they continually want others to kiss their ass as well. They have preemince, and seek the rule as social lords in their territory which could be the immediate area around themselves or their neighborhood, or simply the situation they are in, such as a meeting. One non profit organization I worked for, required that I and others sign a loyalty oath to the executive; now I now know why he required this; he didn’t want someone coming along and challenging his authority; he had a mision to do, and didn’t want any interference whatsoever. All of this contrasts with the elect who eat of the tree of the life, that is Jesus, and eperience his spiritual wisdom and grow in knowledge of Him.

Liberalism was facilitated by

the establishment of the nation of Israel

the telling of the tale of The Cat In The Hat

the development and increase of the income tax

widespread use of public education rather than private education and home schooling

Liberalism was powered by fiat asset inflation, and featured the mystery of knowledge, and rewarded working, wise choice of investing, as well as for many, living in dependency and in clientelism.

Authoritarianism is powered by fiat asset deflation, features the mystery of iniquity, and commands compliance to regional governance, totalitarian collectivism, debt servitude and austerity for all.

The interventionist and monetary inflation policies of the world central banks, have torqued the money supply so much that wealth, that is money, VT, has become warped; in fact warped so badly that new money, must be used, and is being used, and will increasingly be used in its place. This new money, is called diktat money.

Diktat money was born out of the Cyprus Bank Deposit Bailin and issued in Authoritarianism; it is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional sovereign leaders such as Olli Rehn, and sovereign regional sovereign bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.

An inquiring mind asks, where does virtue come from. William J. Bennet writing in the Book of Virtue, p 262 to 265, in Men without Chests, communicates that the objective of education is to produce “just sentiments” in a child’s nature, so that at an ealy age, he feels after things which are noble, so that when the age of reason comes, he will percieve virtue as beautiful and receive her into his heart and mind, and welcome and embrace virtue, having already an affinity for her.

1) … Financial trading analysis for the Monday April 29, 2013 and Tuesday April 30, 2013

A) … On Monday, April 29, 2013, Global ZIRP grossly warped wealth and pushed the S&P 500 to a new high.

Global ZIRP is seen in World Treasury Bonds, BWX, Ultra High Yield Bonds, UJB, Junk Bonds, JNK, and Aggregate Credit, AGG, trading higher, and is seen in the Interest Rate on the US Ten Year Note, ^TNX, trading at 1.67, which is just above its lows of 2013.

The world central banks’ monetary policies of easing has produced Global ZIRP which in turn has grossly warped wealth by making heavily indebted corporations more valuable, and by making corporations that are focused on finance, leisure, booze production, entertainment, recreation, retail, casinos, resorts and vice, more wealthy as well.

In Orwellian fashion, under Liberalism, Global ZIRP has made debt wealth. Countries and corporations that are heavily indebted, have become more valuable, as interest rates have fallen closer to zero. This is called “the zero effect” and distorts wealth so greatly, that a whiplash effect is imminent, whereby, a credit bust and global financial breakdown, will result. Said another way, the world central banks, in pursuing monetary policies of easing and credit liquidity, have crossed the rubicon of sound monetary policy, and have made “money good” investments bad, beginning first with the basic material group of stocks, XLB, and then with the technology, XLK, group of stocks.

As the 10 30 US Sovereign Debt Yield Curve, $TNX:$TYX, has flattened, as is seen in the Flattner ETF, FLAT, flattening, and trading higher in value, and as seen in the Steepner, ETF, STPP, trading lower in value, and as Kuroda Economics has been embraced by the financial markets, wealth has flowed to lenders least likely to generate economic production, such as DB and SAN, and to corporations that make money through recreation and vice, such as SIX, and PINK, to highly indebted companies, such as IP, to Real Estate REITS which package mortgage backed bonds, such as IVR, to Real Estate REITS profiting from a flattening yield curve, such as O, to companies which package debt and transfer money, such as EEFT, and to companies which develop LBOs, by busingt the target apart only to lay off workers and repackaging them with debt, such as TCAP, and GBDC, and to corporations that make money through enviornmental pollution, such as AEP, and to financial guidance companies, such as BEN.

Indebted countries becoming more wealthy include, Australia, EWA, with its bank, WBK, and New Zealand, ENZL, the Phillippines, EPHE, Indonesia Small Caps, IDXJ, and Japan, EWJ, with its banks, MTU, SMFG, MFG, its brokerage, NMR, and its credit services provider, IX, Ireland, EIRL, and its bank, IRE, the US and its Investment Banker, JPM, its Too Big To Fail Banks, BAC, C, and its Regional Banks, RF, FITB, OFG, HTBI.

Indebted corporations becoming more wealthy, include Small Cap Real Estate Companies, ROOF, and Large Cap and Mid Cap Growth Companies, such as MTW, IP,

One of the most rewarding of Liberalism investments schemes was leveraged buyouts, PSP, which saw investment bankers disable companies and repackage them with debt, such as DLPH, FRGI, HII. Liberalisms wealth lords are modern day nephilim, or gods of financial fire, who through financial craft and financial engineering have produced exotic investment vehicles, which under Global ZIRP have soared in value. Thus Liberalism’s money lords, have through genius created financial investments very extreme and alien to Liberalism’s father Milton Friedman, who birthed the idea Free to Choose, leaving one to ask what are these Prometheus and Alien creatures, and leaving the investor asking, Who am I? Who made me? What is my purpose?

Corporations whose manufacturing capability depends upon currency carry trade advantage, such as Japan’s HMC, and whose sales depend upon easy credit, such as automobile manufacturing, CARZ, such as Sweden’s, ALV, and automobile dealerships, such as PAG, SAH, ABG, KAR, AN, KMX, LAD, have soared in value under Global ZIRP.

The bible reveals that Jesus Christ is at the helm of the economy of God, that is He is overseeing the economic and political administrative plan of God, transferring investment out of basic materials, XLK, and technology, XLK, and into discretionary, XLY, for the very completion of the age of investment choice. Having blown bubbles in the former groups, he is now blowing bubbles in the latter group, with cases in point being Media Companies, PBS, such as CBS, CGI, RUK, AOL, YHOO, Retailers, XRT, such as FRCOF, LUX, Entertainment Companies, such as DIS, TWX, SIX, CGSP, Cable TV Companies, such as VMED, CHTR, DISCA, LBTYA, and Communications Providers, such as SATS, thereby expanding and bringing the very fullness and completion of wealth to non-productive investment assets.

Corporations that make money through consumption, becoming wealthy include, Telecom Service Providers, IST, such as Indonesia’s TLK, Britain’s, BT, the Philippine’s, PHI, Japan’s NTT, Argentina’s NTL, and the US’, VZ, and Retail REITS, such as O, GGP, NNN.

Liberalism was an age where investment choice rewarded pharmaceutical manufacturers, PJP, such as NVS, SNY, LLY, MRK, PFE, JNJ, and investment speculation in Biotechnology, IBB.

The world central banks’ monetary policies, in effect policies of money printing, have inflated up the value of corporations making money through vice. Sin stocks given seigniorage by the world central banks include tobacco companies, PM, casinos, PNK, MPEL, and booze producers, DEO, BUD. SAM.

Global ZIRP warping wealth, is seen in the chart of Fidelity Investments mutual fund VICEX, which has been underwritten by trust and confidence in the distressed investments taken in by the Fed under QE 1, and which were traded out for US Treasury Bonds, and are traded by Fidelity Investments’ FAGIX. The world central banks monetary intrusion in stimulating vice stocks has truly warped wealth, and in that sense, the world central banks have created “warped money”. Industrial mining stocks, PICK, once favored currency carry trade investments, such as RIO, VALE, and BHP, stand as tombstones to the age of fiat wealth investment and now the most speculative and interest rate sensitive stocks are seeing investment completion.

Sovereingty provides seigniorage. The world central banks and bankers of all types, using credit and carry trade investment have given seigiorage to fiat money. “Warped money” is short lived money, it is unsustainable, it is simply a flash in the pan at the end of the age of investment choice. A new age, the age of diktat is coming. Crony Capitalism, European Socialism, and Greek Socialism are even now giving way to Regionalism where diktat money replaces fiat money, as Nannycrats provide the seigniorage, that is the moneyness of diktat.

Diktat money was born out of the Cyprus Bank Deposit Bailin and issued in Authoritarianism; it is defined as the compliance required, as well as the trust that is engendered, the debt servitude that is enforced, and the austerity that is experienced, such as heavy losses on large bank deposits, levying additional taxes, privatizations, and sale of a country’s central bank’s gold reserves, when sovereign regional sovereign leaders such as Olli Rehn, and sovereign regional sovereign bodies such as the EU Finance Ministers or the ECB, invoke mandates for regional security stability and sustainability.

The US Fed in providing QE, stimulated investment in the companies whose revenues come from the most discretionary of resources, these include the regional airlines, such as RJET, JBLU, ALK, ALGT, LUV, SKYW, small cap value companies, such as POOL, and recreational vehicle manufactures, such as WGO.

Global ZIRP, in particular Mario Draghi’s OMT has warped the very definition of sound money investments by giving seigniorage, that is moneyness to debt laden banks, such as Germany’s, DB, and Spain’s, SAN. And has driven investment up in Euronet Worldwide, EEFT, which processes transactions for a network of 17,600 ATMs and approximately 67,000 POS terminals in Europe, the Middle East, and the Asia Pacific.

With the rise of the Euro, FXE, since its low in August 2012, of 120 to 130.40 today, European Wealth, VGK, has been reinflated by Mario Draghi’s OMT, driving down nation treasury debt rates, and is largely determined by the trading value of Germany’s DB, and Spain Banks’ DB, and the other European Financial Institutions, EUFN, which are loaded to the gills with their nation state treasury debt. Sharing a common currency, and sharing a common monetary policy, together with Global ZIRP, has produced Peak Wealth, VT, Peak National Sovereignty, EFA, IFSM, Peak Credit, AGG, JNK, and Peak Currencies, DBV, CEW. All backed by global hegemony of the Banker Regime’s prime central bank, the US Federal Reserve, and its prime global hegemonic empire, the United States, VTI. Thus Peak Sovereignty and Peak Seigniorage of Liberalism’s Banker Regime has been produced by Jesus Christ operating in dispensation to fulfill Liberalism’s age of investment choice, where fiat money has become become “warped money”.

The final intrusion of Global ZIRP is that has benefited corporations that make money through enviornmental pollution, that is the Electric Utilities, XLU, such as AEP, DTE, NEE, D, CMS, PNW, WEC, HNP.

Liberalism was an age not only characterized by debt, but also by carry trade investing, and hot money flowed to those countries characterized by a strong work ethic and access to Asia capital and manufacturing resources, the prime example has been Thailand, THD, which rightly earns the title as Liberalism’s most rewarding country for nation investment, EFA. Ireland, EIRL, was another country rewarding nation invesment, as hot money flowed to bank, IRE, information services, ACN, pharmaceutical production, cement production, CRH, JHX, and equipment manufacturing, COV. And Switzerland, EWL, received carry trade investment favor, with a rising Euro, FXE, rallying due to global ZIRP, bubbling up, that is reflating, Electrical Equipment Manufacturer, ABB. Switzerland’s economic fate of having just now attained Peak Wealth, VT, has been the direct result of its currency, the Swiss Franc, as being a hyper-variant of the Euro, FXE.

The chart of the US Dollar, $USD, UUP, shows a trade lower, to close $82.58, as most currencies rose.

The chart of the Euro Yen Currency Carry Trade, EUR/JPY, FXE:FXY, shows a trade higher; yet its chart suggests that it is topping out and turning over.

Global ZIRP is seen in World Treasury Bonds, BWX, Ultra High Yield Bonds, UJB, Junk Bonds, JNK, and Aggregate Credit, AGG, trading at an all time high, and is seen in the Interest Rate on the US Ten Year Note, ^TNX, trading at 1.67, which is just above its lows of 2013.

Monthly charts show World Stocks, VT, World Small Cap Stocks, VSS, Nation Investment, EFA, and Small Cap Nation Infestment, IFSM, traded to new highs. The daily chart of the S&P 500, $SPX, SPY, rose 0.25%, to close at a new all time high of 1997.47. The monthly chart of SPY, shows Global ZIRPs stunning stimulus beginning in January 2013 and lasting through the end of April 2013.

Wikipedia relates The Miracle of Chile which came through Dr. Milton Friedman’s advice for economic liberalism According to the 2010 Index of Economic Freedom (of the Heritage Foundation, Fraser Institute and WSJ), Chile’s economy is the 10th freest.[24] Chile is ranked 3rd out of 29 countries in the Americas and has been a regional leader for over a decade. Chile’s annual GDP growth was 3.2% in 2008 and had averaged 4.8% from 2004 to 2008.[19] The percent of total income earned by the richest 20% of the Chilean population in 2006 was 56.8%, while the percent of total income earned by the poorest 20% of the Chilean population was 4.1%.[19] Chile’s Gini index (measure of income distribution) of 52.0 in 2006, compared to 24.7 of Denmark (most equally distributed) and 74.3 of Namibia (most unequally distributed).[19]

If Dr. Friedman were alive today, would he proclaim a Miracle of New Zealand, whose investment chart, ENZL, shows a spectacular rise in value. New Zealand stands out as a stunning example of the investment craft, in Liberalism’s age of investment choice.

Financial trade in New Zealand, ENZL, has soared spectacularly in value for two reasons, first, its banks have been adept in pursuing ZIRP and purchasing government securities to flatten the yield curve amongst other market distorting objectives, and secondly, because it offers no deposit insurance whatsoever, exposing small local depositors to moral hazard. Pricing in deposit insurance would detract from bank investment performance. New Zealand banks have been engaged in Liberalism’s wildcat finance, a Doug Noland term, to the investors delight, and now place New Zealand residents at risk of experiencing Authoritarianism’ wild cat governance, where leaders bit, rip and tear at one another, in their efforts to become top dog leader as crisis unfolds, and as they impose diktat on people which could takethe form of new taxes, austerity measures, bank deposit bailins, and capital controls. New Zealand banks do not expect to be accountable for the risks they incur through their practices. Gareth Vaughan writes in Interest.co.nz New Zealand depositors lack the insurance present in many other countries because the dangers of moral hazard issues and the difficulties of defining boundaries and because pricing is viewed by officials as bigger concerns than consumer protection.

Elizabeth Trotta writing in Smart Money gives insight into the danger of investment “bubble trap” that exists at the current time relating A bubble occurs when the price of an investment exceeds its underlying value, often because of panicked or irrational buying. When the bubble bursts, panicked selling can occur and prices can plummet, creating steep losses for those bought at the wrong time (or essentially paid too much). Both investors in New Zealand, ENZL, as well residents in New Zealand, are now at risk of financial loss because of moral hazard underlying investment in New Zealand.

Bubble trap is likened to the story of Icarus, the boy who fell to his death upon flying to close to the sun with wings of wax crafted by Daedalus, the one who makes or crafts with divinity, referring to works that are crafted so well that they can capture and hold divinity, yet are frail when exposed to natural processes.

3) … Summary

Jesus Christ has used the world central bank’s monetary policies of easing to produce Global ZIRP which in turn has produced Liberalism’s Peak Wealth and Peak Prosperity by bringing investment completion and fullness to heavily indebted corporations, to corporations that are focused on banking and finance, leisure, booze production, entertainment, recreation, retail, gambling, vacationing and in vice in general. The Banker Regime’s Global ZIRP has produced the very final part, that is the very apex of Liberalism great crack up boom in wealth, VT.

Liberalism was an age best described as wildcat finance, a Doug Noland term, where investment bankers such as JP Morgan’s, JPM, Jamie Dimon, and Asset Managers such as BLK, WDR, EV, STT, WETF, AMG, waived wands of credit and carry trade investment creating wealth, and greatly rewarding investment choice.

Soon out of sovereign default, competitive currency devaluation, credit collapse, and financial system bust, as seen in bible prophecy of Revelation 13:1-4, the Beast Regime, where nannycrats such as Olli Rehn, will rise to rule in Authoritarianism’s age of wildcat governance, yielding clubs of diktat, enforcing regional governance, debt servitude and austerity.